The move comes amid a wide spreading rationalisation of property assets in the hands of the state and state-owned enterprises such as Telkom, Eskom, Denel and Transnet.

The process has caused a flurry of activity in the commercial property industry as players prepare to compete for a share of business or assets out of this far-reaching rationalisation process.

Announced yesterday, the Propnet-Rebserve venture followed a public tender process through which Rebserve was selected as a preferred partner. The facilities management entity is envisaged to help Propnet expand its services from property management into facilities management.

Propnet said in an announcement yesterday that together with Rebserve, and drawing upon international expertise, it would develop a strategic plan and business case for the proposed facilities management entity.

'This plan will examine ways in which maintenance and service delivery can be improved, cost efficiencies achieved and the value of Transnet assets enhanced,' said Propnet.

The company said it would explore the ways in which emerging blackowned companies and small businesses can be roped in.

It expected to finalise a business plan, which requires final approval from the Transnet board by January next year. The new facilities management entity was likely to be formed and put into operation by April.

The new entity would be responsible for providing a total, one-stop facilities management service to the occupants of the properties in Propnet's portfolio and the owners of assets.

The company said the prevailing situation was one where business units within Transnet made their own arrangements to buy in services in an ad-hoc manner. Rebserve's share price gained 1,6% or 10c to close at 630c yesterday.

Business Day