Construction and Property Corner ::: 01 September 2023

Fri Sep 1 11:04:59 CAT 2023

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Construction and Property  Corner ::: 01 September 2023 

ü  Factors to consider when buying your first property

ü  Making sense of construction materials right now

ü  Niger govt signs contract for construction of Bida, Minna roads

ü  Saudi's RCU launches second master plan for urban development of central and southern Al-Ula

ü  Dubai Municipality completes redevelopment of Deira's iconic Clock Tower Roundabout

ü  Abu Dhabi International Airport to welcome travellers to new terminal starting November 2023

ü  Kuwait’s project spending seen higher in 2023-2024

ü  Cutting construction red tape not a simple task

ü  Portion of M-20 construction project expected to be completed by end of 2023

ü  Permit issued for construction of fourth Egyptian unit

ü  China’s flagship global infrastructure initiative is changing in the face of potent headwinds

ü  Ethiopian Construction Works Launches Expansion Plan to Become Africa's Leading Construction Firm

ü  Unpacking the law on family trusts in Zim

ü  Mideast investors to pump in $120bln into Egypt property, says report

ü  South Africa’s Redefine Properties Achieves Success With Green Bond Offering

ü  Fortress hits record r30bn in direct real estate assets with its vacancy rate at an historic low

ü  Real estate as key to growth of the economy

ü  Real Estate Scam Targets Unsuspecting Buyers of Vacant Land in Connecticut

 <https://www.willdale.co.zw/> Factors to consider when buying your first property

I recently did a poll on my social media pages asking my audience what factors they would consider first when buying their first property.

The four available options were: Proximity to amenities, Size of the property (number of bedrooms), Location and Price.

Those who engaged with the poll stated various, well-thought-out reasons for their choices and this showed the differing thought processes people go through on a buying journey.

I was amazed at how the different options were interpreted at different levels on the individual’s priority list. So, as a follow-up to that, I came up with this in-depth article looking at the various factors to consider when buying your first property.

The list is by no means exhaustive, but it can serve as a guideline on what you need to consider.

Buying your first property is a significant milestone in anyone’s life. It’s a thrilling and rewarding experience that comes with a sense of accomplishment and the opportunity to build wealth for future posterity and provide the start and foundation for generational momentum.

However, it is also a complex and daunting process that requires careful consideration and planning. To ensure a successful purchase, aspiring homeowners must take into account several key factors.

In this article, I will be discussing some of these considerations (which I personally think are important) and offer you valuable insights to guide you through the journey of buying your first property.

Financial readiness

Purchasing a property is a significant and serious financial commitment and one that shouldn’t be taken lightly. It is essential to assess your financial readiness before diving into the real estate market.

Begin by understanding your current financial situation — evaluate your income, savings, and existing debt. It is recommended to maintain a stable job or income source and develop a strong credit score (if applicable) before pursuing a property purchase.

Explore your mortgage pre-approval options to determine the loan amount you can qualify for, which will help you identify a suitable budget for your purchase.

This will also greatly help you in managing your other financial commitments so that you don’t take on too much of a financial burden.

You don’t want to live in your dream house and be in too much debt. Buying your dream house is the best thing one can accomplish but on the other hand, it shouldn’t turn out to be a liability that you will be servicing for years and affecting your other commitments.

Budget and affordability

Much like the above factor, determining a realistic budget is critical when buying your first property.

With your home most likely being the single largest purchase of your life you should allocate a comfortable amount to spend on your monthly mortgage payments while considering additional expenses such as property taxes, insurance, and maintenance costs.

It is crucial to strike a balance between your long-term financial goals and fulfilling your housing needs.

Remember, a well-planned and sustainable budget will help secure your financial well-being and enable you to enjoy your property without unnecessary stress in the long term.

In this case, I’d even say “Be honest with yourself about your financial situation.” Nobody knows your finances better than you, so make sure you buy a home that won’t overextend your debt-to-income ratio.

Location

The old adage, “Location, location, location” still holds true in the real estate market. Choosing the right location is one of the most crucial decisions to think about when purchasing a property.

With location, comes other accompanying factors such as like proximity to your workplace, educational institutions, healthcare facilities, transportation, sporting recreational retail and community amenities.

Location also means the neighbourhood/suburb.

In Harare, for example, properties in the Northern suburbs (low density) have historically been preferred locations for anyone looking to buy a home. However, with the expansion of the city, people have started to look in other locations such as Domboshava, Norton and Ruwa for property purchases.

These areas are further away from the CBD, but their location hasn’t deterred people that much. So, depending on your priorities, location can be the most important or least important factor to consider.

However, in the poll that I spoke of at the beginning, location was arguably the most popular answer the audience picked.

Additionally, you should do some research on the neighbourhood’s stability and future development plans. These can greatly impact your property’s appreciation potential. Ensure you strike the right balance between your desired location and your budgetary constraints.

Property type and features

One should also consider the type of property that suits their needs — whether it’s a single-family home, townhouse, condominium flat for rental, or apartment. Each type has its advantages and disadvantages, so evaluate them against your lifestyle and long-term family structure;

Will you have kids? Will you someday stay with extended family members? These are some of the questions people don’t account for in the immediate future, but can come back to cause you stress years down the line as they won’t have enough space to accommodate their changing lifestyles.

It’s important to take into consideration the property’s features and amenities such as the number of bedrooms and bathrooms, outdoor spaces, parking facilities, security measures, accessibility and any future remodelling/extension work. Think long-term, and prioritise your needs and wants, ensuring they align with the available options and future plans.

Property inspection

I cannot stress this point enough! Never overlook the importance of a thorough property inspection before finalising any purchase. This is a lifetime purchase and you want to get it right the first time.

Engage a professional home inspector to assess the property’s structural condition, electrical and plumbing systems, and potential hidden issues. Even if a property is new, there could be hidden issues that you’re not aware of.

A comprehensive evaluation can identify any potential concerns or repairs required, which will allow you to make an informed decision and negotiate the price accordingly. A small investment in a thorough inspection can save you from significant expenses in the future.

Legal considerations / due diligence

If you’re not too familiar with the legalities of buying property, Navigating the legal aspects can be daunting and confusing.

Engaging a qualified real estate attorney is strongly recommended to guide you through the process. Your legal representative will review all the necessary documents; purchase agreements, title deeds, and any other legal documents to ensure a smooth and secure transaction.

They can also provide valuable insights and highlight any legal constraints or issues associated with the property. This is another area where investing in an external party to assist you comes in handy to ensure everything is above board (Do your due diligence properly).

Future plans

This factor is also linked to property type and features. Since buying your first property is a significant commitment, it should align with your future plans. Consider all factors that might seem trivial; career aspirations, family plans, and potentially relocating to another place for one reason or another.

Keep an eye on how much customization will be required in each property you see and ensure the property you choose suits your long-term goals and offers the flexibility to adapt to any changes that may arise.

Also, think of what you want to do with your property; Do you want to 1. Buy and sell (flip), 2. Buy to keep and rent out, or 3. Buy to live in. All these options have different customisation requirements and your choices have to reflect this.

A well-thought-out purchase that accommodates your future plans will provide stability and financial security in the years to come.

Future growth potential

One underlying theme with property purchases: Always think long-term! When purchasing your first property, it is also essential to consider its future growth potential. Research your location’s real estate market trends and recent developments to gauge the property’s potential value appreciation.

Factors such as planned infrastructure projects, zoning changes, and nearby commercial developments can significantly impact the growth potential of your investment.

A property with good growth potential can be an excellent long-term asset and may provide you with a higher return on investment should you decide to sell it in the future.

Professional guidance

Lastly, seek professional guidance throughout the property purchase process. Never be afraid to look for and engage with several experienced developers and property agents.

This will be immensely beneficial to you. A knowledgeable professional in the real estate sector can help you navigate the market, give you tips on how you can negotiate the best deal, and share valuable information.

They can also offer insights into property values, market trends, and local regulations, empowering you to make informed decisions.

Conclusion

In conclusion, purchasing your first property is an exciting journey that requires careful consideration of several factors.

By being financially prepared, setting a realistic budget, choosing your most suitable location, thoroughly inspecting properties, considering future growth potential, and seeking legal guidance, you can make a successful and rewarding purchase.

It is your ticket to establishing a stable foundation for your future, building wealth, and enjoying the pride of homeownership.

Use these factors as points of consideration in your search for your dream home and you will most definitely make the right purchase.

Ken Sharpe is a serial entrepreneur, innovator and visionary. Since 2006, Real Estate and property development has been his primary focus. He has done this with WestProp, a customer centric, private developer of exceptional properties in Zimbabwe. This article was first published on his LinkedIn page.0-businessweek

Making sense of construction materials right now

By the end of August, there is normally a clear sense for how full-year performance is going to look for both the general economy and the construction materials industry.

2023, however, is proving to be anything but normal.

The U.S. economy continues to operate under a shroud of uncertainty, with headlines sending mixed messages every day.

Standard economic indicators lead to more confusion than clarity. Interest rates and mortgage rates have reached highs not seen in at least two decades, yet residential construction is seeing an increase in demand.

Treasury yield curves continue to be inverted – that’s typically an indicator that a recession is on the horizon – but economists continue to change their forecasts for a possible downturn.

Additionally, the Federal Reserve continues to raise interest rates to combat inflation – albeit with a few pauses.

The labor market continues to be resilient. Shouldn’t there be more unemployment? What is the trajectory? Are we headed for a hard landing, a soft landing or no landing at all?

Through this haze of confusion, the construction materials sector remains strong. Despite market abnormalities, producers continue to benefit from guaranteed funding from the Infrastructure Investment & Jobs Act (IIJA) and legislative packages such as the CHIPS Act and the Inflation Reduction Act. Revenues and earnings are up due to effective price increases, while volumes have either flattened or slightly declined.

>From a mergers and acquisitions (M&A) standpoint, the market uncertainty has resulted in fewer headline deals. Momentum can quickly shift, though, and lead to a stronger M&A market for construction materials in the second half of the year and into 2024.

What’s happening in residential

Says PPI’s Jeff Poe: “You can have a conveyor track perfectly in the center for years, and then all of a sudden it will want to track to the left or the right.” Photo: P&Q Staff

FMI Capital Advisors says aggregate producers will benefit from surprising resilience in residential construction. Photo: P&Q Staff

In theory, a rising interest rate environment should produce a decline in new residential development.

Rising rates should price homebuyers out of the market and, thus, dampen demand for residential construction. The current dynamics challenge conventional wisdom, though.

Despite mortgage rates reaching 20-year highs in August, new construction for single-family residential is on the upswing. Existing home sales have dwindled as homeowners do not want to trade in their lower-rate mortgages for higher ones. Therefore, the dearth in home supply has been exacerbated by historic underbuilding over the past decade, and homeowners unwilling to surrender their low mortgage rates.

As such, residential developers are capitalizing on the demand for new homes. Sales of newly built single-family homes have increased significantly in recent years as a total share of residential transactions, making up roughly one-third of all single-family home sales.

Holcim chairman and CEO Jan Jenisch summed up the residential market on the company’s second-quarter earnings call, noting that the U.S. doesn’t have enough inventory in residential housing and that this will be a positive trend. Craig Kesler, CFO and executive vice president of finance and administration at Eagle Materials, agrees.

“You’re starting to see some pickup in housing starts and the housing orders at the homebuilder level,” Kesler says.

Despite the recent uptick in residential construction, the National Association of Homebuilders/Wells Fargo Housing Market Index (HMI), a measure of homebuilder confidence, experienced its first dip in 2023. The HMI August reading was at 50, which still indicates a favorable outlook.

Niger govt signs contract for construction of Bida, Minna roads

Niger State Government has signed a contract agreement with two construction firms for the construction of the Bida ring road and rehabilitation of Minna township roads.

The contract agreement will have the China Civil Engineering Construction Company (CCECC) handle the rehabilitation of township roads in Minna within the stipulated time of 24 months while Arab Construction Company is responsible for the reconstruction of Ring Road in Bida within 30 months.

Governor Mohammed Umaru Bago disclosed that the road contracts are in line with his Urban renewal policy and that the contracts for Minna township and Bida Ring road are under phase one.

He stated further that the Minna project is in two segments adding that the second segment has been advertised.

Governor Umaru Bago who was speaking during signing of contracts said a bye-pass from Pago to Garatu is among over 20 other roads for the Minna township projects, explaining that the bye-pass will cover 100,000 Square Kilometres of land while that of Bida ring road will cover 40,000 square kilometres.

He said the projects would open up the areas and generate about N1 trillion and N200 billion respectively which he said would be used to refinance more projects.

While assuring the contractors of security, the Governor however warned contractors that his government will not condone variation, as funds have already been earmarked for the projects with a 25 percent advance payment guaranteed.

He also directed that contractors should work with indigenes especially the youth, adding that a social register will be opened for those interested to be part of the projects.

The Governor also announced that the Suleja and Kontagora contracts will be signed in the next 30 days under the second phase of the projects.

The Permanent Secretary Ministry of Works, Hassan Baba Etsu described the projects as unprecedented in the history of Niger State and that the contractors were carefully selected through a thorough process.

Managing Director, CCECC David Wang and of Arab Contractors, Mohammed Eledaruis assured the Government of the timely completion of the projects.

The Project Consultant, Olatunji Ajayi, while commending the state government for the stride, which he said will have multiplier effect on the economy of the state assured that he will ensure quality projects are delivered.

The Commissioner for Works, Suleiman Umar, signed on behalf of the state government while David Wang and Mohammed Eledaruis signed for their respective firms.

The Minna and Bida ring road contracts are expected to create direct job opportunities for 2,500 people while 12,000 people will have indirect jobs.

Saudi's RCU launches second master plan for urban development of central and southern Al-Ula

RIYADH — The Royal Commission for AlUla (RCU) launched the second master plan for urban development of central and southern AlUla. The plan aims to improve the quality of life and stimulate economic growth and urban development in the region.

This is within the framework of comprehensive sustainable development stipulated in the AlUla Vision in line with the Kingdom’s Vision 2030.

The RCU announced the strategic direction of the plan, with the slogan “Towards a Prosperous Society,” will focus on urban development with developing residential land and utility services and facilities, in addition to achieving public health goals, and improving the sustainable mobility experience.

The second master plan represents a road map for the development of the central and southern regions of AlUla, which completes the comprehensive development phase of what was announced in 2021, by launching the design vision titled “Journey Through Time.” It is concerned with developing and rehabilitating the main archaeological area in AlUla, and the two plans aim to transform AlUla into a major tourist destination and global leader in arts, heritage, culture and nature, and to become an ideal destination for living and working.

The plan includes developing the infrastructure and the urban environment, raising the quality of provided services, and making available elements of activities that aim to raise the quality of health services, raise the quality of recreational activities, and enhance comprehensive sustainability in residential areas, as well as various facilities. This is in addition to providing multiple means of transportation, with the integration of Wadi Al-Qura with neighboring regions in the province.

The plan titled “Towards a Prosperous Society” is based on achieving economic development, taking care of cultural and natural heritage, achieving humanization of the city, and providing an urban experience with its living services in various neighborhoods and locations. The development of the second phase of the plan was based on the foundations of the AlUla Sustainability Charter, which aims to activate a circular carbon economy and achieve full carbon neutrality in AlUla governorate by 2035.

The urban development plan will enable the development of innovative infrastructure, with which the Royal Commission aims to develop an ideal destination for living and working, and to provide the requirements of life in neighborhoods featuring their urban style and integrated services. This is to create a harmonious environment that connects people with nature and the ancient heritage of the governorate. The neighborhood will be provided with a number of vital services and facilities, including green spaces, sports fields, and parks.

The RCU reiterated its commitment to promoting comprehensive sustainable development, enhancing the urban development of the governorate, and preparing it through a system of programs and initiatives, in order to achieve first human development before place as a basic methodology, with enhancing that vision by presenting architectural models and designs inspired by traditional architectural styles in AlUla

Dubai Municipality completes redevelopment of Deira's iconic Clock Tower Roundabout

DUBAI - Dubai Municipality has completed the Clock Tower Roundabout Development Project in Deira at a cost of AED10 million, marking a significant milestone in the enhancement of Dubai's urban landscape.

The project, which commenced in May 2023, has brought about a remarkable transformation, breathing new life into the iconic landmark.

With meticulous attention to detail, the Municipality has rehabilitated the area, introducing stunning aesthetic views that seamlessly blend solid flooring with exquisite horticultural elements. The centerpiece of this revitalised roundabout is a magnificent water fountain, now featuring a fresh and contemporary design.

The project is a testament to the Municipality’s commitment to preserving the city’s rich history while embracing modernity. The Clock Tower Roundabout has been reimagined in a style that harmonises with Dubai's urban character, while celebrating its historical significance.

Dawoud Al Hajri, Director-General of Dubai Municipality, said, "We completed the development of the Clock Tower Roundabout in Deira, one of the most prominent engineering and architectural landmarks in Dubai on schedule, giving it a new facade with modern designs that are aligned with the nation’s cultural and historical character and the city’s status as a vibrant creative hub. The project reflects Dubai Municipality's commitment to transforming key landmarks and further enhancing the city's attractiveness, cultural vitality and aesthetic ambience.”

The construction of the Clock Tower Roundabout included various improvements, such as the renovation of floors, and the implementation of a new design for the water fountain that facilitates flexibility in controlling water levels and using multicoloured lighting. The structural framework of the roundabout was also repainted, featuring unique elements such as precast concrete pebbled wash and three-dimensional design.

The redevelopment also integrated sustainable agricultural elements by planting 'Ground Cover Sisifium' in the inland basins. Additionally, the surroundings were beautified with Washingtonia palms positioned adjacent to the clock tower's pillars, complemented by three tiers of wildflowers that create unique colour patterns, offering visitors a stunning view.

Bader Anwahi, CEO of the Public Facilities Agency, said, "In a harmonious blend of form and function, Dubai Municipality's newly designed water fountain is congruent with the clock tower’s architecture. Its four limbs extend symmetrically, opposite to the tower's columns. The fountain features a multi-tiered arrangement of nozzles on the clock tower’s limbs, each angled uniquely to create a hierarchical structure. Central nozzles rise intersectionally, reaching heights of up to five metres. Each nozzle is equipped with RGB lighting, offering a medley of pre-programmed colours. A smart fountain sensor adjusts the height of the water jets to respond to variations in wind intensity.”

The roundabout's new lighting system includes mapping and three-dimensional formats, as well as photographic displays that can be used during national ceremonies and events.

Abu Dhabi International Airport to welcome travellers to new terminal starting November 2023

(WAM) -- Abu Dhabi Airports has announced the forthcoming opening of its state-of-the-art new terminal at Abu Dhabi International Airport.

Known as Midfield Terminal Building during the construction phase, ‘Terminal A’ is scheduled to begin operations in early November 2023.

The opening will mark a significant milestone for the emirate that has the potential to transform the local aviation ecosystem, strengthen Abu Dhabi’s growing reputation as a destination of choice for travellers, and further boost its position as a global hub for trade and business.

Covering 742,000 square meters of built-up area, Terminal A is among the largest airport terminals in the world and will significantly increase Abu Dhabi International Airport’s passenger and cargo capacity. Once operational, the new terminal will accommodate up to 45 million passengers per year, be able to process 11,000 travellers per hour and operate 79 aircraft at any given time.

The imposing and memorable architecture of Terminal A has won international design awards and adds an architectural landmark to Abu Dhabi’s cityscape. Blending modern, lightweight aesthetics with functional brilliance, the building’s glass exterior maximises natural light while creating a monumental civic space inside the terminal.

In line with the UAE’s sustainability aspirations and targets, the building features energy-efficient lighting, advanced Heating, Ventilation and Air-Conditioning (HVAC) systems and has incorporated sustainable materials in its construction.

As a major step towards realising Abu Dhabi Airports’ commitment to limiting its operational carbon footprint, a fully integrated solar photovoltaic system has been installed on the roof of Terminal A’s car park, which currently powers a three-megawatt (MW) plant that is saving nearly 5,300t of CO₂ annually.

Sheikh Mohammed bin Hamad bin Tahnoon Al Nahyan, Chairman of Abu Dhabi Airports, said, “As Abu Dhabi’s new gateway to the world, Terminal A is an embodiment of Abu Dhabi Airports’ commitment to support the emirate’s sustainable economic development. The opening of the facility, which is on par with the largest and grandest on our planet, turns over a new page in Abu Dhabi’s 55-year aviation history.”

Elena Sorlini, Managing Director and Interim CEO, Abu Dhabi Airports, said, “Terminal A exemplifies our commitment to excellence and offering exceptional services that meet the evolving priorities of today’s travellers. Through leveraging the latest technologies, Abu Dhabi’s reimagined airport experience will offer a seamless passenger journey, fostering connectivity, interactions, business, trade and tourism, all of which are essential elements in strengthening Abu Dhabi’s position on the world stage.”

Kuwait’s project spending seen higher in 2023-2024

Kuwait is expected to boost capital spending on projects and other sectors during its 2023-2024 state budget, a local bank has reported.

The OPEC producer, which controls the world’s sixth largest crude deposits, will be buoyed by an expected improvement in oil prices and lower actual project expenditure in the previous year, National Bank of Kuwait said in a study on Kuwait’s budget.

The report, published on Tuesday, expected Kuwait to revert to a budget deficit in fiscal 2023-2024 after recording its first actual surplus last year in eight years.

This is due to an increase in current expenditure to record high levels and slow fiscal reforms despite a decline in some subsidies, the report said.

It noted that the 2023-2024 budget, which started on 1 April this year, projects a deficit of around KWD6.8 billion ($22.44 billion).

“There will be an actual deficit at the end of the fiscal year, but it will be far below the forecast deficit as we expect it to be around KWD1.6 billion ($5.28 billion),” it said.

“The deficit will be lower despite an expected increase in capital spending compared with previous year’s expenditure due to the government’s decision to give more emphasis to development projects…we see a lower deficit owning to expectations oil prices will improve and consequently the country’s revenue.”

The report expected Kuwait to resort to withdrawal from its foreign financial reserves to cover the deficit in the absence of alternative financing tools. It estimated those reserves at around $850 billion.

Cutting construction red tape not a simple task

Experts say we're still behind Europe on sustainable building materials, but one Canterbury builder is walking the talk. Video first published October 19 2022.

National plans to make building more affordable by cutting red tape and letting more overseas products in, but that won’t be as easy as it sounds, an industry advocate says.

Rising building material costs, and lengthy consent processes have long plagued the industry, and Covid-era supply shortages and supply chain disruptions heightened problems.

Now, National has released its Better Building and Construction plan, which the party says will address the issues.

The party’s building and construction spokesperson Andrew Bayly said the sector was a critical part of the economy as it employed 295,000 people and contributed 7% of GDP.

It delivered over 40,000 buildings each year, but it faced productivity challenges due to excessive regulation, worker shortages, disrupted supply chains and a severe boom-bust cycle, he said.

Streamlining consents to cut compliance costs and improve efficiency, and allowing more innovative products into the country to make building cheaper were two of the plan’s key proposals.

Digital technology and remote inspections would be harnessed to put consents on a fast track, he said.

STUFF

Remote building inspections will drive productivity gains, National Party housing spokesperson Chris Bishop says.

“Building inspections are a major bottleneck that can leave contractors sitting idle for days waiting for an inspection. Remote inspections are standard practice overseas, and will drive substantial productivity gains.”

Code Compliance Certificates would be required to be issued within five days, while specialised teams would process consents for buildings over 10 metres.

The Building Code would also be reviewed to introduce risk-based consenting that considered the size and complexity of a development and the builder’s credentials.

Bishop said competition for building materials would be unleashed by granting automatic approvals for appropriately certified building materials from overseas.

“Products that meet European, American, British and Australian standards will be automatically approved for use in New Zealand.”

The plan also committed to supporting access to skilled workers through apprenticeships and immigration settings, a review of scaffolding rules, addressing issues to do with phoenix companies, and making the promotion of competition a goal of the regulatory system.

Certified Builders chief executive Malcolm Fleming said while the plan sounded good and covered issues that concerned the industry, it needed to be properly assessed, and then supported, by the industry.

Implementing some of the proposals would be far more complex than it might first appear, he said.

“There is a reason why larger European or North American product manufacturers have not already set up here, for example. New Zealand is a small market globally, and it is geographically spread out.

“The costs of setting up a full, long-term service, which provides warranties, in a market that has some very well-established players has been off-putting for many.”

SUPPLIED/SUPPLIED

The industry wants to see more alternative products, Certified Builders chief executive Malcolm Fleming says.

Another issue was that New Zealand’s climate had some unique characteristics, such as high wind zones and high UV levels, and that meant a higher rate of decline for exposed products, he said.

“Overseas-approved products might not be able to perform to the standards required here, and there needs to be a way of assessing that before they are put to use.”

Lack of affordability was the industry’s biggest problem, so it wanted to see more alternative products on the market, but it needed to be confident in them and in the level of service provided, he said.

While he was positive about moves to streamline consenting processes, he was opposed to making the promotion of competition a goal of the regulatory system as it was critical for the system to be robust.

In recent years the Government has acted to address some of the issues highlighted in National’s plan.

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Following the Gib crisis last year, a Critical Materials Taskforce was set up, and this was expected to help pave the way for more alternative products.

In May the Government accepted eight of the nine recommendations to come out of a Commerce Commission report into the building supplies industry.

These included creating clear compliance pathways for a broader range of key building supplies, and exploring ways to remove impediments to product substitution.

The Ministry of Business, Innovation and Employment was working on a new certification scheme for offsite manufacturing, changes to the CodeMark scheme to help new products show compliance, and new product information regulations to improve the use of alternative products.

It was also reviewing the building consent system, and submissions on its options paper closed in August.

Portion of M-20 construction project expected to be completed by end of 2023

Part of the M-20 road construction project is expected to be completed by the end of the 2023 construction season.

This project is a part of a $19 million Michigan Department of Transportation (MDOT) that includes resurfacing the Pickard Street roadway, signal modernizations, the addition of a right-turn lane on eastbound Pickard Street at Isabella Road, work to replace the bridge bearings on the U.S. 127 overpass, and pump station improvements.

Over the summer, crews have been working along the M-20/Pickard Street corridor from Packard Road to U.S. 127. Currently, the project has been on schedule and a part of it should be completed by Nov. 2023.

“The crews are getting ready to switching the traffic configuration and move work to the lanes that are currently open for traffic,” MDOT media representative Jocelyn Garza said.

There had initially been consideration for a roundabout on Pickard as a part of the project plan, though there are no immeadiate plans to implement it. A roundabout might become a reality pending any traffic information gathered.

In terms of the rest of this project, plans call for crews to address M-20 from Packard Street to Mission Street during the 2024 construction season.

Permit issued for construction of fourth Egyptian unit

Egypt's Nuclear Power Plants Authority (NPPA) has been granted a licence by the country's nuclear regulator for the construction of the fourth and final unit at the El Dabaa nuclear power plant. Construction of unit 4 is scheduled to begin by the end of this year.

The Egyptian Nuclear and Radiological Regulatory Authority (ENRRA) carried out a comprehensive inspection at the El Dabaa site between 30-31 July, checking the readiness for commencement of construction of unit 4. It also "considered the results of the dialogue on the review and evaluation of the first, second and third units".

"The safety of the fourth unit of the Dabaa nuclear power generation plant was verified, and no risks were proven to threaten humans, the environment, and properties," ENRRA said.

NPPA said the issuance of the licence "is the culmination of a series of successful technical meetings between specialists of the NPPA and ENRRA to ensure that the licensing documents submitted meet all regulatory requirements and achieve the highest standards of nuclear safety, and to ensure the readiness of NPPA to start the construction process for the fourth nuclear unit".

It added: "It is planned, following the obtaining of the construction permit, to implement the technical works for the first concrete of the fourth nuclear unit during the fourth quarter of this year."

The El Dabaa nuclear power plant project - about 320 kilometres north-west of Cairo - is based on contracts between NPPA and Russia's state nuclear corporation Rosatom that entered into force on 11 December 2017. The plant will comprise four VVER-1200 units, like those already in operation at the Leningrad and Novovoronezh plants in Russia, and the Ostrovets plant in Belarus.

The contracts stipulate that Rosatom will not only build the plant, but will also supply Russian nuclear fuel for its entire life cycle. They will also assist Egyptian partners in training personnel and plant maintenance for the first 10 years of its operation. Rosatom is also contracted to build a special storage facility and supply containers for storing used nuclear fuel. Korea Hydro & Nuclear Power is constructing 80 buildings and supplying materials for the non-nuclear turbine islands.

NPPA applied to ENRRA for construction licences for units 3 and 4 in January 2022, six months after applying for those of units 1 and 2. Construction of unit 1 began in July last year, with that of unit 2 following in November. A construction permit for unit 3 was issued in March this year, with the first concrete poured for its nuclear island in early May.

Egypt's goal is for nuclear power to represent 9% of electricity by 2030, which would be achieved by the commercial operation of the first two units by that time, directly displacing oil and gas.

NPPA noted that the Dabaa plant will "achieve a tremendous boost to economic and technological development, and represents technological national security for the Arab Republic of Egypt, in addition to the clean, green, and cheap electrical energy it provides to meet the needs of the country's renaissance and development".

China’s flagship global infrastructure initiative is changing in the face of potent headwinds

China’s ambition to connect the country through rail, ports, energy infrastructure, roads and logistics projects to Africa, Asia and Europe through the Belt and Road Initiative (BRI) has faced a number of headwinds. 

Still, with just under 3,000 projects built from 2011, announced and under way, BRI has altered the landscape. It has connected China to the ends of Europe, helped the country gain a strong foothold in Africa and solidified ties with Middle East, North African and Central and South Asian states.

The Initiative aims to foster enhanced connectivity and cooperation among participating countries through infrastructure development, economic integration, and cultural exchange. It consists of the Silk Road Economic Belt, which focuses on land-based infrastructure corridors, and the 21st Century Maritime Silk Road, which centres on maritime connectivity. 

Ethiopian Construction Works Launches Expansion Plan to Become Africa's Leading Construction Firm

With the goal of becoming the top construction firm in Africa, the Ethiopian Construction Works Corporation (ECWC) is launching an expansion strategy to develop its presence in Kenya and South Sudan. It also intends to establish branches in additional African nations, such as Egypt, Rwanda, Equatorial Guinea, and others.

The company is already working on a USD 60 million project in Djibouti with the assistance of a regional building firm while constructing roads that connect Ethiopia with its neighbors. According to the CEO of ECWC, Yonas Ayalew, the company is completing the legal requirements for its offices in South Sudan and Kenya.

ECWC is looking to cooperate with Asian and European businesses that have a presence in Africa in order to further expand its position in the continent's construction market. To discuss potential partnerships, the Ministry of Foreign Affairs organized conversations between the ECWC and ambassadors from several nations.

Ayalew disclosed ECWC's intentions to launch the continent of Africa's first construction training facility. He emphasized that indigenous contractors presently complete more than 90% of Ethiopia's construction projects. The 21 stories building in Addis Ababa's Mexico district is one example of a construction project that ECWC has taken over from international builders.

-The Ethiopian Herald

Unpacking the law on family trusts in Zim

THE rules of Zimbabwean law of trust are largely common law. It is a dynamic area of law, which is still evolving. In recent years, there has been a growing interest in family trusts and most immovable properties are now registered as trust assets.

Lawyers are encouraging their clients to transfer their assets into trusts as part of the comprehensive estate planning strategy.

Estate planning is the process through which lawyers and clients work toward an enhanced stratagem for the ownership, management, and orderly transfer of both current and anticipated assets during life and upon death.

Whilst a majority want to acquire as many assets as they can during their lifetime, very few think of what will happen to those assets after their demise or during their incapacitation.

Thus, the wise will always make plans to maintain a degree of control over their assets even beyond the grave.

Whilst Trusts are an all-inclusive estate planning mechanism, they are far more complicated than a Will and require considerable planning.

It is not in every situation that a trust will be a viable solution. Hence, it is always prudent to meticulously assess the need for one.

Thus, having considered this area of law at length, in this series of articles, we will discuss various legal principles relating to family trusts.

In this first article, we will discuss the nature of a trust, its functions, and its legal personality.

What is a trust?

In simple legal terms, a "trust" is a legal relationship between three parties, which typically involves the founder/settlor, trustees, and beneficiaries. (See, Musemwa and Ors v Estate Late Misheck Tapomwa and Ors HH-136-16.)

This relationship is created by the founder, who places assets under the control and administration of the trustees for the benefit of beneficiaries.

A trust is created by a trust deed, which is its constitution. A

trust deed sets out the legal framework within which the trust must operate.

The “founder” is the party, who creates a trust. He or she will usually donate trust property to the Trust's Trustees.

A “trustee” is the party who holds and administers property received from the settlor or any other person for the benefit of the trust's beneficiaries.

He or she owes a fiduciary duty to the trust beneficiaries, and he or she must administer the trust solely for the benefit of the trust beneficiaries. (Sackville West v Nourse and Another 1925 AD 516.)

A trust thus binds the trustee to deal with trust property for the benefit of the beneficiaries of whom he or she may himself be one.

A “beneficiary” is the party, who derives a benefit from the creation of a trust by the founder and the administration of trust property by the trustee.

“Trust property” constitutes the capital of a trust, which may consist of any asset movable, immovable corporeal or incorporeal.

Function of a trust

A trust is a versatile entity that can be used inter alia: to safeguard assets against risks; protect assets against creditors; for business activities; control wealth distribution to beneficiaries; reduce potential estate duty; minimize other tax liabilities or for charitable purposes. (CIR v Pretorius 1986 1 SA 238 (A).)

The legal personality of a trust

Unlike companies and other business entities, a trust has no legal personality at common law.

It is not a legal/juristic person. In other words, it is not a corporate body.

Nevertheless, the precise legal status of a trust is still controversial since a trust is recognised by statute and general practice for some specific purposes as a legal entity for example for income tax purposes; for stamps duty; in the realm of the law of insolvency; for registration of property in the Deeds Registry and in litigation of trust matters.

A juristic person, as a legal subject, enjoys a legal existence independent from that of its members or the natural persons, who created it.

It can have legal rights and duties and it can enter into contracts in much the same way as natural persons can.

It is also capable of suing and being sued in its own name, of holding property in its own name, and logically, therefore, of making profits and losses that are its own and not those of its members. (Maclaine Watson & Co Ltd v International Tin Council [1989] 3 All ER 523 at 531.)

Section 45(3) of the Constitution of Zimbabwe 2013 provides that both juristic persons and natural persons are entitled to the rights and freedoms set out in Chapter 4 of the constitution to the extent that those rights and freedoms can appropriately be extended to them.

It thus follows that in its strictly technical sense, a trust is a legal institution sui generis.

In Land and Agriculture Bank of South Africa v J L Parker and Ors [2004] 4 ALL SA 261 (SCA), Cameron JA had this to say regarding the legal status of a Trust: “Except where statute provides otherwise, a trust is not a legal person.

It is an accumulation of assets and liabilities.

These constitute the trust estate, which is a separate entity.

“But though separate, the accumulation of rights and obligations comprising the trust estate does not have legal personality.

“It vests in the trustees and must be administered by them — and it is only through the trustees, specified as in the trust instrument, that the trust can act.

Who the trustees are, their number, how they are appointed, and under what circumstances they have power to bind the trust estate are matters defined in the trust deed, which is the trust’s constitutive charter? Outside its provisions, the trust estate cannot be bound.”

Similarly, in Lupacchini NO and Another v Minister of Safety and Security [2011] 2 All SA 138 (SCA), Nugent JA also observed that: “A trust that is established by a trust deed is not a legal person — it is a legal relationship of a special kind….)

These South African judgments are in sync with our law.

Within our jurisdiction the issue of whether or not a trust is a person has received attention and there is a plethora of authority on the subject.

In WLSA & Ors v Mandaza & Ors 2003 (1) ZLR 500 (H) 505 E-H SMITH J quoted with approval the pronouncement of Steyn CJ in Commissioner of Inland Revenue v MacNeillie’s Estate 1961 (3) SA 833 (A) 840 F-H that: “Like a deceased estate, a trust, if it is to be clothed with juristic personality, would be a persona or legal entity consisting of an aggregate of assets and liabilities.

“Neither our authorities nor our courts have recognised it as such a persona or entity”.

That statement of the law was confirmed by the Supreme Court in Crundall Bros (Pvt) Ltd v Lazarus NO & Anor 1991(2) ZLR 125 (S) where at 128F, it was said: “A trust is not a person. The trustee is the person to be considered for the purposes of the Regulations.” (See also Veritas v Zimbabwe Electoral Commission and Ors SC 103/20; Crundall Bros (Pvt) Ltd v Lazarus NO & Anor 1990 (1) ZLR (H), at 298E)

Conclusion 

Trusts as part of the comprehensive estate planning strategy and the foregoing unpacked the legal nature and general purposes of a Trust.

The ensuing discussion in the succeeding articles will unpack the other salient legal issues which specifically relates to Family Trusts.

DISCLAIMER: This article represents the views of the authors only and does not intend to give any kind of legal opinion on any matter.

Mideast investors to pump in $120bln into Egypt property, says report

The Middle East sovereign wealth funds have plans to inject up to $120 billion into Egypt, thus indicating their strong confidence in the country's market growth, according to Knight Frank MENA, a global real estate consultancy.

Amidst the post-pandemic landscape, a revitalised global interest in Africa has emerged, underscored by significant investment commitments from major players, stated Knight Frank Mena in its 'Africa Horizons 2023/24 Report', a comprehensive analysis showcasing Africa’s remarkable post-pandemic recovery.

The report spotlights Egypt’s real estate market, particularly Cairo, as an outstanding prospect for investment.

The vibrant city of Cairo alone is home to over 20 million people, making it a bustling metropolis. The country’s impressive portfolio of approximately 2bn square feet of active real estate, offers immense potential for growth.

With a focus on Egypt, this report reveals a renewed surge in global interest in the continent, thanks to substantial investment commitments from major global powers including the US, UK, South Korea, UAE, Saudi Arabia, Turkey, and China.

The UK’s $2 billion commitment to sustainable projects spanning the continent, alongside engagements from other global powers, highlights the renewed allure of key hub cities such as Lagos, Nairobi, Cairo, Johannesburg, and Accra, it stated.

Recently added to Knight Frank’s Africa network, Egypt’s market shines as North Africa’s rising star. Middle East sovereign wealth funds have plans to inject up to $120bn investment in the country, indicating their strong confidence in Egypt’s market growth.

Zeinab Adel, Head of Egypt Office of Knight Frank, said: "With a population exceeding 109.3 million, Egypt stands as an alluring prospect that beckons us. In the heart of this historic land lies an extraordinary opportunity, one that resonates strongly with the GCC market and Middle Eastern buyers alike."

"Egypt’s magnetic blend of rich heritage, strategic geographical location, and burgeoning economy propels it to the forefront of investment destinations," he added.

South Africa’s Redefine Properties Achieves Success With Green Bond Offering

Redefine Properties, a leading South African Real Estate Investment Trust (REIT), has issued another green bond as it leverages its sustainability journey.

growatt_inside_jan

Redefine will use the money raised to refinance eligible green assets (across its property portfolio) that align with the group’s overarching, long-term climate-resilient framework. The assets include highly rated green buildings that incorporate a variety of initiatives aimed at improving their energy and water efficiency.

Redefine’s third green bond was oversubscribed 1.9 times with R1.9 billion received in bids at an auction on 21 August and resulted in an upsized allocation to ZAR1.0 billion across three, five and seven years.

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“Demand for the bond issuance was particularly high in the seven-year tenor, resulting in the allocation of ZAR425 million to that tranche, which bodes well for our long-term funding structure,” says Ntobeko Nyawo, Chief financial officer of Redefine. “South Africa’s debt capital market is experiencing a recovery in demand for high-quality commercial instruments with an environmental, social and governance (ESG) underpin.”

Also Read  Madagascar Invites Bids For Two Solar Parks Of 210 MW Capacity

This green bond will further support the long-term decarbonisation of Redefine’s buildings, which is focused primarily on the reduction of energy consumption through efficiency interventions, mutual collaboration with tenants, and solar photovoltaic (PV) expansion.

“This latest green bond issue further improves our funding match between our assets and liabilities in our capital structure and reaffirms our commitment to placing ESG at the heart of what we do,” Nyawo says. “We believe that this will continue to play a critical role in strengthening and solidifying our balance sheet.”

The capital raised will be deployed in the refinancing of qualifying buildings that have achieved a 4 Star Green Star (or higher) rating from the Green Building Council South Africa (GBCSA), which is a tool used to rate the environmental impact and sustainability-related performance of buildings.

The green bond aligns with Redefine’s sustainability goal to further transform its properties into environmentally sustainable and resource-efficient assets.

The green bond also aligns with the International Capital Market Association Green Bond Principles. It was listed on the JSE in the Sustainability Segment – a platform for companies to raise debt for green, social and sustainable initiatives.

Also Read  POWERGRID's Subsidiary Successfully Commissions Transmission System Project for Solar Energy Zones in Rajasthan

Nyawo adds that Redefine will continue its strategic participation in South Africa’s deep and liquid debt capital market, as it provides the opportunity to raise competitive funding that will enable the group to achieve its mission as it aims to deliver the smartest and most sustainable spaces the world has ever known.

Fortress hits record r30bn in direct real estate assets with its vacancy rate at an historic low

Fortress Real Estate Investments Limited has published its FY2023 results, highlighting that it now has its largest portfolio of direct real estate assets at R30 billion, excluding developments in progress, coupled with the lowest vacancy rate in its history, dating back to its listing in 2009, of 3.7%.

“At the core of this result is the continued capital recycling through the disposal of older, under-performing properties to fund new developments which are in demand and have lower structural vacancies. Our continued strategic focus on developing and letting premium-grade logistics real estate in South Africa and Central & Eastern Europe, as well as growing our convenience and commuter-oriented retail portfolio, has proven to be successful,” said Steven Brown, CEO of Fortress.

“Rising interest rates have impacted commercial real estate globally, both from a valuation perspective and an increase in funding costs. South Africa has not been immune to this global trend, but the impact has been less pronounced than in developed markets. Higher interest rates have led to flat investment property valuations across our portfolio, despite higher net operating income. Fortress has hedged 85% of its interest rate risk for a period of 3,5 years, which has mitigated the impact of higher interest costs on our debt. The South African banking and debt capital markets remain stable, which means that we can access debt on good terms and at fair prices. In contrast, many developed markets face challenges of much higher interest rates, coupled with falling capital values.”

Fortress continues to see strong demand for new logistics space in South Africa, particularly in well-located and secure logistics parks. This has translated into a record low vacancy in this portfolio of 0.5% from 2.9% as at the 1H2023 reporting date. The logistics portfolio weighted average lease expiry (WALE) has improved to 4.7 years (FY2022: 4 years) as a result of longer-term leases concluded on the new developments.

During FY2023, Fortress completed R3.5 billion of new, state-of-the-art logistics developments, including the 163,533m² Pick n Pay distribution centre at Eastport Logistics Park, which is valued at R2.24 billion.

“We have strategically slowed the pace of the speculative warehouse developments, as we have successfully developed over three-quarters of the 1,000,000m² pipeline we controlled around five years ago. Due to the buoyant market for new logistics facilities, we remain positive about adding speculative supply, but need to balance this against keeping key sites available for attractive pre-let transactions. Pre-let developments carry less risk, although take longer to secure, increasing the holding cost on the undeveloped land,” said Brown.

Fortress’ exposure to the Central Eastern European (CEE) region has provided a strategic diversification benefit with a 26% increase in the valuation of the direct portfolio when converted to SA Rand over the period and a 27% increase in the value of the NEPI Rockcastle investment held throughout the period. Both the direct logistics assets in the region and NEPI Rockcastle have again performed well. 

During FY2023, Fortress converted from being a Real Estate Investment Trust (REIT) to a Real Estate Investment Company.

“In light of Fortress’ particular focus on developments and our investment portfolio composition, the REIC structure allows for tax benefits which could significantly reduce any tax leakage as it pertains to the relationship between the company and our shareholders. The waters remain as yet untested for this transition; however, we are cautiously optimistic about the efficiency which can be gained as it pertains to tax payable at company and shareholder level,” explained Brown.

“The coming year will bring opportunities to well-capitalised real estate investors who are well-placed to take advantage of opportunities in a market where many sub-sector fundamentals remain strong, but where many businesses are primarily focused on their balance sheet and liquidity positions. At Fortress, our focus on total returns over the long term will continue to drive our investment and capital allocation decisions,” he concluded.

The company’s loan-to-value ratio decreased from 38.7% at 30 June 2022 to 35.9% at 30 June 2023.

Real estate as key to growth of the economy

THE importance and contributions of real estate to the growth of the economy is huge and cannot be overstated. The property sector is not just a very important sector of any country’s economy, it is the economic engine of the world and is in charge of driving economic growth. When it comes to cities, towns and communities development, real estate is the core. The industry has built communities, created jobs, created incomes, increase families and national wealth.

And when we talk of globalisation, real estate is an essential component because property development companies invest in other countries to establish and maintain global presence. The impact of the sector is very large because there are so many different sectors that are involved in real estate, from construction to leasing. Without the real estate sector, modern life would not exist. Real estate investment has over the years enhanced the economic development of countries like Brazil, Taiwan, United Arab Emirate, China, Russia, Indonesia, and South Africa, to mention a few. Economists are of the position that countries with high levels of economic freedom have higher levels of GDP growth than those without, especially when it comes with low levels of real estate development. Unfortunately, Nigeria is situated within this category.

Real estate sector is heavily underdeveloped in Nigeria. With an estimated population of about 200 million people, Africa’s leading economy is highly dependent on crude oil which accounts for about 10 per cent of the country’s GDP, 70 per cent of government revenue and more than 83 per cent of the country’s total export earnings, according to Organisation of Petroleum Exporting Countries, OPEC, making the country’s economy highly vulnerable to fluctuations in crude oil production, prices and earnings. As a result, the economy has been periodically or intractably challenged, slipping in and out of recession. At some points, production and exploration were challenged by the activities of militants in the South-South region of the country. Oil theft is the biggest challenge facing the oil sector, with huge economic consequences.  

In other words, it has been challenging for the real estate sector because real estate business follows the economic circle and the economy has been having challenges and real estate latches on the way the economy is patterned. There are prospects for the industry to thrive however; there are lots of opportunities for development within the real estate sector, but the opportunities can only be realised by conscious efforts of government and private sector commitment to realising them. One thing we have continued to brandish in the country is housing shortage which has risen from about 17 million in 2008 to about 21 million today. This is logical because Nigeria’s population has also grown from about 80 million 15 years ago to about 200 million. The key thing here is that housing shortage provides opportunities and incentives for housing and real estate development. Real estate sector in other climes contribute hugely to Gross Domestic Product. In the United States of America and United Kingdom, you have contributions of 18 to 20 per cent to GDP. In Nigeria, statistics indicate that housing contributes a ridiculous percentage of about 0.5 per cent. 

But then, the country remains a real estate investment attraction and commercial destination in Africa. No matter what, real estate is an important part of our society and culture and will always have a significant impact on our everyday lives. So, the real estate market in Nigeria is filled with lots of opportunities. At this point, government has to come out with a visible, clear-cut and well-orchestrated policy direction that would be able to promote real estate investment. Government ought to invest in critical real estate variables as it is done in other climes when there are challenges in the economy. What the government does is to invest massively in infrastructure, create jobs, and stimulate economic activities and development.

For instance, when government or private developers acquire land for housing development, government needs to provide infrastructure, which is access road, water, electricity and other facilities that will make the place habitable. Once the cost of infrastructure is removed, the remaining cost of the project is negligible. Government should also engage in site and services scheme; property development should not be ‘all comers field’; it ought to and should remain an area for experts. You see houses collapsing here and there, glorious ghettoes and den of criminals here and there, just because non- professionals have infiltrated the terrain, just because the right things are not done, and appropriate regulations are not applied. Minimum entry qualifications must be set for those who desire to go into real estate investment and development. Government must come out with clearly defined policies. You must have in your organisation professionals in the built industry, estate surveyors and valuers, architects, COREN-registered engineers, and several others before you go into property development.

A new leadership is now in place; government is just taking shape with the appointment of ministers; people are not bringing out money at the moment to invest in properties due largely to the body language of the present administration; but things will change. It might not be as it were, but I am optimistic that vibrancy will return very soon to the nation’s economy and the property market which have suffered a lull in the past few years. There is no business that does not require real estate and there is no human being that does not require real estate one way or the other, which buttress the importance of real estate to economic growth and development.  

Real estate is the most important and influential industry in our economy. The property sector will always remain an essential part of the economy and investment in properties will most certainly fetch income for families, investors, professionals and government through taxes and other fees. This is particularly true when it comes to developing estatess, cities and towns. Real estate is at the core of these processes. 

Real Estate Scam Targets Unsuspecting Buyers of Vacant Land in Connecticut

Real estate agents along the Connecticut shoreline are warning that scams involving the sale of vacant land are on the rise in Fairfield County and headed your way.

Agents in south central Connecticut say they’ve thwarted attempts by overseas con artists who impersonate owners of vacant land to sell the properties to unsuspecting buyers — a scam that’s come to light recently after a South-Africa-based con artist successfully sold an unbuilt lot in Fairfield for $350,000 to local developers who then began construction on a $1.5 million house.

Jules Etes, a real estate agent in Guilford, told CT Examiner that she has been targeted three separate times in the last few months, as the scammers attempted to sell vacant lots in Madison, Clinton and Hamden with William Pitt Sotheby’s International Realty.

“It’s frustrating and it’s annoying because as an agent, you get so excited when there’s a lead,” Etes said. “And then through each twist and turn you go, ‘Wait a minute. Something’s not right.’”

Etes said that because she was familiar with the area and knew some of the actual property owners, she was able to catch onto the grifts.

In the case of the lot at 51 Sky Top Terrace in Fairfield, the property has been owned by New York resident Daniel Kenigsberg since 1991. He filed a lawsuit last month in federal court against the developers and real estate attorney claiming that he was unaware of the sale until the framing on the new house was complete. As of Thursday, Fairfield land records still list the developers as the current property owners. The listing agent from the October sale did not respond to a request for comment.

“I can see how it happens,” Etes said of the Fairfield property. “People should be knowledgeable, especially if they have vacant land. They should really keep tabs on it.”

Etes said some of the scammers she’s dealt with are convincing – they use email addresses with the actual property owners’ names, have intimate knowledge of the property and seem eager to sell as quickly as they can.

In one instance, Etes said she received a message from someone attempting to sell a vacant lot at 155 New Road in Madison. She said she researched the property owner – a local development corporation – and got in touch with one of the agents, who assured her that he was not selling the land. 

“The guy that was contacting me through text gave me an email address that was actually this man’s name with his middle initial at outlook.com,” Etes said. “You would never have known it wasn’t him unless you went this far with it.”

While agents selling a house must tour the property and collect the relevant documentation, Etes said there is little an agent can do to verify vacant lot owners – especially when the scammers don’t meet in person or talk over the phone.

“If they just have a vacant property that they’ve done nothing to, it’s just raw land. There isn’t really any documentation they would provide,” she said.

Based on town property records, the scammers could have stolen about $250,000 in the Madison sale, about $130,000 from an attempt to sell a lot at 1 Houperts Way in Clinton, and about $60,000 from 18 Barraclough Avenue in Hamden had Etes not caught on.

She said William Pitt Sotheby’s leadership has warned agents of the increase in fraudulent emails and text messages, and asked staff to be vigilant.

Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2023

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from s believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and d from third parties.

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