In addition to creating the potential for significant annual savings in the future, the change in strategy aims to increase service delivery and streamline business processes and efficiency to enhance profitability.
Redefine Joint CEO, Wolf Cesman, says the decision to internalise the property management function - which 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 says.
Other benefits include the streamlining of business process, which will improve turnaround times in service delivery and efficiency, and reinforcing direct relationships with tenants.
The property management division will be established under the leadership of David Rice, Redefine’s director responsible for operations.
Rice says the size and scope of Redefine’s property portfolio, which comprises more than 400 properties in nine provinces, necessitates a hands-on property management approach. “The design and implementation of the sophisticated IT system required to administer the property portfolio is already well underway. Through automating reporting, the IT system will provide efficient, usable and accurate information to the business, allowing staff to manage property rather than paperwork,” he says.
Pieter Strydom, currently an asset manager at Redefine, has been appointed to head the property management division and Redefine financial manager, Aaron Suckerman, will head the finance and administration division. Rice says the company will recruit the highest caliber of experienced management and staff to make up a dedicated and committed quality team.
The process to move the property management in-house to be located at the group’s head office in Rosebank has been set in motion and is expected to be fully implemented by the end of November 2010.
