South African Office Sector as an Investment Opportunity - Free Essay Example

Sample details Pages: 7 Words: 1965 Downloads: 7 Date added: 2017/06/26 Category Economics Essay Type Research paper Tags: Africa Essay Did you like this example? SOUTH AFRICAN OFFICE SECTOR AS AN INVESTMENT OPPORTUNITY TABLE OF CONTENTS DECLARATION CHAPTER 1: THE RESEARCH BACKGROUND 1.1Introduction 1.2The research problem statement 1.3The research questions CHAPTER 2: BRIEF REVIEW OF THE RELATED LITERATURE 2.1Real Estate Investment as a Wealth Creation Tool 2.2Real Estate Investment Framework CHAPTER 3: ANALYSIS OF THE SOUTH AFRICAN COMMERCIAL OFFICE SECTOR 3.1Position of South African Listed Property Sector 3.1.12012 Performance 3.1.22013 Performance 3.1.3First Quarter of 2014 Performance 3.2Status of South African Commercial Property Market 3.2.12012 Performance 3.2.22013 Performance 3.3Condition of South African Office Sector 3.3.1Nominal Gross Market Rental Growth across All Grades of Regional Offices 3.3.2Nominal Growth of Regional A-Grade Office Gross Market Rentals 3.3.3Regional Pioneer-Grade Office Gross Market Rentals 3.3.4Regional A+-Grade Office G ross Market Rentals 3.3.5Regional A+-Grade Covered Reserved Parking Gross Market Rentals 3.3.6Rental Escalation Rates on New Leases across All Grades of Regional Offices 3.3.7Typical Gross Outgoings for All Grades of Regional Prime Offices 3.3.8Escalation Rates on Outgoings across All Grades of Regional Offices 3.3.9Capitalisation Rates for A-Grade Multi-Tenanted Regional Offices 3.3.10Typical Rent Free Periods across All Grades of Regional Offices 3.3.11Regional Vacancies CHAPTER 4: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 4.1Summary and conclusions 4.2Recommendations references . Don’t waste time! Our writers will create an original "South African Office Sector as an Investment Opportunity" essay for you Create order CHAPTER 1: THE RESEARCH BACKGROUND 1.1Introduction South Africaà ¢Ã¢â€š ¬Ã¢â€ž ¢s four traditional asset classes are equities, property, bonds and cash. As diversification essential to investment strategy, most investors opt to include either listed or unlisted property within their portfolios. According to Jones Lang LaSalle (2014: 5), around R15.8 billion of the R29 billion worth of sale transactions in 2013, an approximate 54.00%, occurred within the South African office sector. The value of transactions in the office sector improved from R7.6 billion in 2012 to R15.8 billion in 2013, an increase of around 109.00%. Approximately 60.00% of all sale transactions in 2013 occurred in the decentralised office nodes of Gauteng alone. The significant increase in the value of transactions was attributed to the aggressive acquisition of quality office properties by listed property funds. The most prominent transaction in 2013 was Growthpointà ¢Ã¢â€š ¬Ã¢â€ž ¢s purchase of The Towers in Alice Lane, Sandton Central Business District (CBD) from Tiber on a 7.40% yield for R563.6 million. Investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ review of the abovementioned data may leave many with the perception that the office sector might currently be the best performing property sector in South Africa. In order to determine the accuracy of such a perception, most investors will conduct a thorough analysis of South Africaà ¢Ã¢â€š ¬Ã¢â€ž ¢s listed property sector, professionally managed investment property portfolios and office sector on a nodal basis. 1.2The research problem statement Insufficient research by investors negatively impacts their broader understanding of the South African office sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s current performance. 1.3The research questions How has the South African listed property sector been performing in comparison to other asset classes over the short term? How has the South African office sector been performing in relation to the national retail à ¢Ã¢â€š ¬Ã¢â‚¬Å" and industrial sectors since 2012? How are the various nodes of the South African office sector currently performing? CHAPTER 2: BRIEF REVIEW OF THE RELATED LITERATURE 2.1What is outsourcing? Outsourcing may be defined as a contractually managed relationship between a vendor and an enterprise whereby the vendor undertakes responsibility for a business function of the enterprise, which may have been performed by in house staff (White and James, 1996, p. XIV; Barett, 1995, p. 124). It can more concisely be described as the contracting of functional specialists to manage business units that lay outside the framework of the organizations principal activities (Dominguez, 2006, p. 5). Quelin and Duhamel describe outsourcing as the operation of shifting a function previously governed internally to an external supplier through a long-term contract, and involving the transfer of staff to the vendor for the firm. According to their definition, five features typify strategic outsourcing: A close link between outsourcing processes and the key success factors of a firm in an industry. The transfer of ownership of a business function previously internalised, often including a transfer of personnel and physical assets to the service provider. A global contract, longer and denser than a classical subcontracting agreement. A long-term commitment between the client and the service provider. A contractual definition of service levels and of each partnerÃÆ' ­s obligations. Outsourcing is a process whereby an organisation transfers a function, previously governed internally, to an external third party via a service level agreement. It generally involves an organisation contractually conferring its staff and management responsibility to an autonomous vendor (Quelin and Duhamel, 2003: 652; Barrett, 1998: 124). Brown and Wilson (2005: 20) define outsourcing as the à ¢Ã¢â€š ¬Ã‹Å"act of obtaining services from an external sourceà ¢Ã¢â€š ¬Ã¢â€ž ¢. 2.2What can be outsourced? Outsourcing it not limited to services but also embraces business processes. An organisation can outsource any function it considers non-core and supportive of its main business. According to Unnico (2001) services being outsourced by organisations include: Table 1: Services being outsourced Custodial Architecture Trash Security Grounds Food Plant Facilities Management Space Mailroom Records Moves Reprographics Energy Audio Visual Cleanroom Commissioning Logistics Shipping Integrated Facilities Management Subcontractor Management Storeroom Routine Maintenance Production Brown and Wilson (2005: 22-23) states that the most prevalent commercial functions being outsourced by organisations are information technology, administration, distribution and logistics, finance, human resources, manufacturing, contact centres / call centres, sales / marketing, real estate / facilities management and transportation. The most predominant elements of business outsourcing encompass: Table 2: Element of corporate outsourcing Human Resource Services Knowledge and Decision Services Operations Support Services Marketing Services Customer Interaction Services Back Office Transaction Processing Information Technology and Software Operations Finance and Accounting Services 2.3Why outsource? The business environment as we know it changes continuously. The main drivers of such change are the revolution of technology, globalisation and financial pressure. In order for organisations to survive and prosper, it is imperative for them to focus on their core business functions. Core business functions are however reliant on non-core business functions and it is therefore essential for organisations to have a clear strategy to their support operations (Lee and Harris, 2001: 25-29). According to Brown and Wilson (2005: 45-47) the main drivers for outsourcing are: Fast tracking of re-engineering benefits; Access to world-class competencies; Cash injection from selling off assets to third party; Redeployment of internal resources; Need to re-evaluate problematic functions; Release and availability of capital; Enhanced company focus; Risk minimisation; Access to external resources; and Reduced operating costs. 2.4Risks of outsourcing In order for an organisation to decide whether to outsource a business support service or process, it need to study the risks involved with outsourcing. According to According to Hinks and Hanson** (2001: 48-49) the disadvantages of outsourcing are: Inefficient service provision; Non-realisation of projected cost savings linked to outsourcing; Excessive costs relating to the re-absorption of outsourced functions; Vulnerability relative to an organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s core business; Risk of unexpected collapse of service provider; Fixed term contracted service providers not upgrading technology and training; Service provider experiencing process or information technology failure; Overreliance on service providerà ¢Ã¢â€š ¬Ã¢â€ž ¢s support service; Dishonest behaviour by service provider; Security and confidentiality breaches by service provider; Sabotage by service provider; Breakdown of relationship between an organisation and a service provider; Disconnection between non-core function managed by service provider and core business managed by organisation; Organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢s competitiveness may be affected negatively should a service provider struggle financially and be unable to invest in technological advances; Negative impact on company culture, operations and business objectives; Incompatibility as a result of an organisation and a service providerà ¢Ã¢â€š ¬Ã¢â€ž ¢s contrasting business objectives, work practices and business ethics; Reduced strategic input; Value loss due to fragmentation; Strategic dislocation and communication opacity between an organisation and a services provider; and Loss of key staff, expertise and knowledge. 2.5Benefits of outsourcing It is imperative for an organisation to analyse the benefits of outsourcing, and to weigh them up against the risks associated with contracting-out, before marking a decision of whether to outsource or not. According to Hinks and Hanson** (2001: 48-49) the advantages of outsourcing are: à ¢Ã¢â€š ¬Ã‹Å"Reduced / variable overheads; Transfer of overheads from fixed to variable status; Removal of non-core operations allows management and investment to focus on the primary business activity (the core process); Savings in office space and equipment provisions; Possible staff cost reductions; Removal of uncertainty about future costs of maintaining effective and competitive business support; Reduced risk of costly errors arising from ignorance of the non-core practices; Investment risk transfer; Excellence of service can be achieved immediately; The service provider will be dedicated to that activity (no learning curve of division of interests); Access to market competitiveness and technological currency in the service provision; A downsizing of property commitments through outsourcing; Opportunity to get the company service provision out of a rut; The simulation of new solutions to problems from the appropriate mixing of different approaches; Scope for downsizing; Increases options for organisational re-structuring through property and human resource management flexibility; Access to specialist knowledge; Wider career scope for staff; Good in a fast-developing and / or highly technological area; Increased efficiency; Decreased headcount; Decreased cost of service; Access to world-class support; and Transfer of worry and riskà ¢Ã¢â€š ¬Ã¢â€ž ¢. 2.6Outsourcing Decision Process Chapter 2 brown and wilson 2.7Role of Facilities Management Service Provider 2.8Selection of Facilities Management Service Provider Chapter 6 brown and Wilson Chapter 5 wiley from 5.9 onwards CHAPTER 3: ANALYSIS OF 3.1Position of South African Listed Property Sector 3.1.12012 Performance CHAPTER 4: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 4.1Summary and conclusions It is evident from the research conducted, that even though the South African office sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s total return improved from 11.90% in 2012 to 13.60% in 2013, the sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance remains inferior to that of the industrial à ¢Ã¢â€š ¬Ã¢â‚¬Å" and retail sectors. Cape Town CBD remains the best performing city centre in South Africa. The top regional decentralised office nodes are Century City in Cape Town, La Lucia Ridge in Durban, Sandton CBD in Johannesburg and Menlyn in Pretoria. The South African office sector might recover during the course of 2014, should gross domestic product growth and employment figures improve, pending the implementation of the National Development Plan by the South African Government. 4.2Recommendations Investors should ensure that they undertake adequate research in order to establish the true performance of a sector. Inadequate research can result in poor investment decisions. It is evident from the research that even though the office sector achieved the highest total investment transactions value of all three sectors in 2013, it remains the bottom performer in terms of total return. REFERENCES Capgemini and RBC Asset Management, 2013. World Wealth Report 2013. [online] Capgemini and RBC Asset Management. Available at: https://www.capgemini.com/resource-file-access/resource/pdf/wwr_2013_0.pdf [Accessed 08 May 2014]. Catalyst Fund Managers, 2013. Listed Property Sector Monthly Overview January 2013. [online] Catalyst Fund Managers. Available at: https://www.catalyst.co.za/documents/fundDocs/monthlyReview/catalystDomestic/2013/monthlyReportJan2013.pdf [Accessed 08 May 2014]. Catalyst Fund Managers, 2014a. Listed Property Sector Monthly Overview January 2014. [online] Catalyst Fund Managers. Available at: https://www.catalyst.co.za/documents/fundDocs/monthlyReview/catalystDomestic/2014/monthlyreportJan2014.pdf [Accessed 08 May 2014]. Catalyst Fund Managers, 2014b. South African Listed Property Review April 2014. [online] Catalyst Fund Managers. Available at: https://www.catalyst.co.za/documents/fundDocs/monthlyReview/catalystDomestic/2014/Monthly%20Report%20Apr%202014.pdf [Accessed 08 May 2014]. Cloete, C.E., 2005. Property Investment in South Africa. 2nd ed. Pretoria: The South African Property Education Trust. IPD, 2013. South African property delivers improved performance in 2012. [press release], 25 March 2013, Available at: https://www.ipd.com/about/media_centre/2013/SAPOA%20%20IPD%20South%20Africa%20Annual%20Property%20Index.pdf [Accessed 08 May 2014]. IPD, 2014. South African property delivers stable yet impressive performance in 2013. [press release], 26 March 2013, Available at: https://www.ipd.com/about/media_centre/news_arc hive/2014/IPD%20South%20Africa%202014%20Annual%20Property%20Index%20PR.pdf [Accessed 08 May 2014]. Jones Lang LaSalle, 2014. Commercial Real Estate Transaction Review: South Africa. [online] Jones Lang LaSalle. Available at: https://www.joneslanglasalle.co.za/ResearchLevel1/JLL%20Commercial%20Real%20Estate%20Transaction%20Review%20South%20Africa%202014.pdf [Accessed 08 May 2014]. Phyrr, S.A.; Cooper, J.R.; Wofford, L.E.; Kaplin, S.D.; Lapides, P.D., 1989. Real Estate Investment: Strategy, Analysis, Decisions. New York: Wiley. Rode and Associates, 2014. Rodeà ¢Ã¢â€š ¬Ã¢â€ž ¢s Report 2014:1. Bellville: Rode and Associates. SAPOA, 2014. Office Vacancy Survey Report Q1:2014. [online] SAPOA. Available at: https://www.cmsignition.co.za/download/files_1047/SAPOAOfficeVacancyReport_April2014.pdf [Accessed 08 May 2014].

The Human Condition and Ideologies in Hamlet by Willliam...

Hamlet Texts reflect their context and paradigms but transcendental texts that explore aspects of humanity can resonate through time and remain relevant and accessible to audiences. William Shakespeare’s introspective play, Hamlet, explores the complexity of the human condition by reflecting ideologies such as justice, loyalty and morality. Although these deeply human ideas ensure the plays resonance, they are somewhat secondary to the depths of Hamlet’s human struggle. These thematic concerns reflect how flaws in the values of society descend into corruption. Through an exploration of the characterization, Shakespeare invites a re-evaluation of the values that shape human nature. The textual integrity of Hamlet makes it of distinctive†¦show more content†¦Hamlet sees something that is rotten in his kingdom and he knows it is his moral responsibility to resolve this issues however he finishes off by saying that in actual fact he is powerless â€Å"but break my heart, for I must hold my tongue† admitting his weakness. Hamlet begins to grapple with the nature of humanity and morality following the confrontation with the ghost. The appearance of the ghost triggers Hamlet’s existential struggle â€Å"All is not well†¦ I doubt some foul play†¦ foul deeds will rise† (Act 1 scene 2) through the use of foreshadowing, Shakespeare exposes the nature of humanity to audiences through the construction of Hamlet’s character. He emphasises that a strong sense of morality can cause conflicts in the decision to make noble choices. The relevance and significance of the revenge tragedy is in the way it explores human nature and forces audiences to evaluate ideologies such as revenge and justice. The concept of revenge is accompanied by moral conflict and Shakespeare demonstrates that by acting immorally society is likely to be riddled with corruption. Hamlet seeks to avenge the death of his father but struggles with the ramifications of seeking righteous revenge through an immoral act. The imposition of revenge instills the existential questioning on Hamlet as it contradicts his with his social expectation. His

Roman Architecture Essay Example For Students

Roman Architecture Essay The architectural style of Rome was firmly rooted in the Hellenistic traditions. However, Roman architecture is probably more accurately reflected in the developmentof new engineering skills and secular monuments than the ideas of gods and perfectionthat birthed the Greek architecture. They introduced not only new ways to construct amore efficient building but also a entirely different purpose for the building to be built. While still holding the beauty that was so masterfully achieved by the Greek culture andadding their own practically and ingenuity, the Romans developed an architectural stylethat remains to this day. The Greeks people had a very good reason, in their minds, to build a beautifulpiece of architecture; the worship of gods. Most all of the examples of Greek architecturethat we know of today were temples. The gods were the driving force behind any majorarchitecture of the Hellenistic period. This is not true of the Roman culture. Though theRomans did build temples to their gods, the Roman style was more predominantly seenin public dwellings and social gathering areas, such as basilicas and forums, than in theirtemples. In fact, a majority of the temples that the Romans built were nothing more thancopies of Greek temples, with the exception of the domed Pantheon that will bediscussed later. Also, the Romans included their emperors in the temples along with thegods and sometimes the temple was just for the emperor himself. Another major difference between Greek and Roman architecture was thepurpose behind the building. Greek architecture was meant to be viewed as a piece of artwork that was dedicated to the gods. This is easy to see from the ornateness of theoutside of the building with the pediments and metopes and the rather drabness of theinside with the exception of the friezes. The Greek designed it as a sculpture in a sense,with all of the beauty to be viewed from the outside. This way of thinking is turnedcompletely around in the Roman architectural style. Although the Roman building arebeautiful on the outside, the true art lies on the inside with the many-colored walls andpaintings that gave a sense of depth to the room. Also, the Roman architect wasconcerned with the lighting of the room so that the interior decorations could be seenclearly. These things were important to the Romans because their buildings were meantto be gathering places for the public. Th e basilica was one such of these types ofbuildings that was intended to be a gathering place for Romans citizens to hold meetingand perhaps even courts. Bathhouses and market places know as forums are yet otherexamples of the types of building that the Romans focused on making pleasing to the eyeon the inside rather than the outside. Not only did the Romans differ on why to build a building but they also madedrastic differences on how to build it. The Greeks used what is know as a ?post andlintel? system of designing a building. This is basically the idea of standing to columnsup and placing a beam across them. A very simple and easy construction but on the otherhand not a very strong one. As the Roman civilization grew larger and larger thebuildings they used for meetings and markets of course had to grow too. This presented aproblem with the use of columns, because the big the building, the more columns neededto hold it up. Thus the Romans turned to engineering for the solution and the arch wasborn. By using arches instead of columns and beams, the weight of the structure wasspread evenly out and toward the ground rather than directly down on the beam. Thisincreased the amount of weight that could be supported in a single area and thus givingmore room on the inside by taking away previously necessary columns, t hough they didkeep some around for decoration. 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The superior engineering skills of the Romans truly played amajor role in their architecture and set it apart from their Greek counterparts. .uc65ac1d47c5f74a3899b4f8042b73ae1 , .uc65ac1d47c5f74a3899b4f8042b73ae1 .postImageUrl , .uc65ac1d47c5f74a3899b4f8042b73ae1 .centered-text-area { min-height: 80px; position: relative; } .uc65ac1d47c5f74a3899b4f8042b73ae1 , .uc65ac1d47c5f74a3899b4f8042b73ae1:hover , .uc65ac1d47c5f74a3899b4f8042b73ae1:visited , .uc65ac1d47c5f74a3899b4f8042b73ae1:active { border:0!important; } .uc65ac1d47c5f74a3899b4f8042b73ae1 .clearfix:after { content: ""; display: table; clear: both; } .uc65ac1d47c5f74a3899b4f8042b73ae1 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uc65ac1d47c5f74a3899b4f8042b73ae1:active , .uc65ac1d47c5f74a3899b4f8042b73ae1:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uc65ac1d47c5f74a3899b4f8042b73ae1 .centered-text-area { width: 100%; position: relative ; } .uc65ac1d47c5f74a3899b4f8042b73ae1 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uc65ac1d47c5f74a3899b4f8042b73ae1 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uc65ac1d47c5f74a3899b4f8042b73ae1 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uc65ac1d47c5f74a3899b4f8042b73ae1:hover .ctaButton { background-color: #34495E!important; } .uc65ac1d47c5f74a3899b4f8042b73ae1 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uc65ac1d47c5f74a3899b4f8042b73ae1 .uc65ac1d47c5f74a3899b4f8042b73ae1-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uc65ac1d47c5f74a3899b4f8042b73ae1:after { content: ""; display: block; clear: both; } READ: Carlos Santana EssayThough the origin of their ideas came from the Greek architecture, the Romanswere brilliant in the ways in which they organized and improved those ideas. Theypioneered innovations in architecture, produced ground-breaking designs, and altered thevery way we view buildings. They have left an everlasting impact on architecture bycombining their way of life in the architecture that begin long before them.