Redefine seeks greater control

Posted On Monday, 01 March 2010 02:00 Published by eProp Commercial Property News
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Redefine Properties, is moving the property management function of its portfolio in-house.

David RiceIn an effort to create potential for significant annual savings in the future, SA’s second-largest listed property group, Redefine Properties, is moving the property management function of its portfolio in-house.

The group, which has an R18,2bn property portfolio, said on Friday the change in strategy was aimed at increasing service delivery and streamlining processes and efficiency to enhance profitability.

Moving property management in-house at the group’s head office in Rosebank had been set in motion and was expected to be complete by the end of November. Redefine joint CEO Wolf Cesman said the decision to internalise the property management function — it is currently outsourced to Broll Property Group — emerged from a process arising from consolidating and integrating the business since the merger with ApexHi and Madison last year.

“The new structure will necessitate set-up costs and increases in both staff costs and direct expenses, but greater direct control over the operational management of the properties as owner and landlord is the objective,” he said.

Other benefits include the streamlining of business processes, which would improve turnaround times in service delivery and efficiency, and reinforcing direct relationships with tenants.

The property management division would be established under the leadership of David Rice, Redefine’s director responsible for operations.

Rice said the size and scope of Redefine’s property portfolio, which comprises more than 400 properties in nine provinces, necessitated a hands-on property management approach.

“The design and implementation of the sophisticated IT system required to administer the property portfolio is already well under way,” he said.

Last modified on Wednesday, 29 January 2014 12:40

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