SA Corporate Real Estate Fund today announced that it has awarded the contract for the property management of its entire portfolio to Broll, effective from 1 July 2013.
SA Corporate is a diversified real estate investment fund listed on the JSE. It invests in retail, industrial and office property, mostly in the major metropolitan centres of South Africa. SA Corporate’s portfolio consists of 139 properties, covering 1.187 million square meters of lettable area, independently valued at R8.1 billion at 31 December 2012.
For SA Corporate, it puts the fund’s property management in the skilled hands of one of South Africa’s most respected property managers. Broll manages properties for nine listed property funds, with its unique understanding of the dynamics and key drivers for portfolios in this sector.
For Broll, receiving the property management contract for the SA Corporate portfolio brings its assets under management to R61 billion, of which R12 billion is outside the borders of South Africa.
Malcolm Horne, CEO of Broll says: “We’re delighted to be awarded the SA Corporate property management contract for its entire property portfolio. It is now our single largest client in our property management business. We were impressed by the passion and the integrity of the SA Corporate team during the rigorous tender process. As a group we can identify with their core values and passion for excellence, and we can’t wait to start on 1 July.”
Rory Mackey, Managing Director of SA Corporate says: “We are very pleased and enthused to appoint Broll as our new property manager with effect from July. This follows an extensive process over the last couple of months for the right partner to manage our diversified portfolio of properties across South Africa with significant potential for growth. Broll has a particular competence in managing retail properties of the range of sizes in our portfolio and intelligence in trends in South African logistics necessary to drive the growth of the Fund’s industrial portfolio. We have agreed key performance indicator targets aligned to making a significant improvement to the performance of the portfolio and look forward with confidence to this new partnership. The appointment of a new property manager is estimated to achieve savings in property management fees in excess of 20% which translates into a growth in distribution by the Fund in excess of 1% from the inception of the contract.”
Broll will create a separate business unit for the SA Corporate portfolio, to meet the listed property fund’s specific needs. A take-on team of 42 people will use May and June to prepare for the effective date of 1 July, when an experienced property management team, with extensive group support, will take over.
Underscoring the value of specialised property management in competitive markets, Broll’s property management has grown by some R13 billion assets under management in past last 18 months.
“We’ve strengthened Broll’s operational platform and service offerings over recent years,” says Horne.
Broll boosted its technical capabilities by acquiring WSP Group Africa’s facilities management unit. It grew its broking and transaction teams and invested in supporting infrastructure and systems. Broll’s Johannesburg-based research team advises and equips clients and its teams. Also, Broll’s training academy, intern and mentorship programmes allow for career paths and help retain highly skilled staff to manage and add value to clients’ properties.
Adding to its unique proposition Broll’s CBRE international affiliation provides exposure to global market trends, innovative ideas and multi-national tenants.
“SA Corporate’s property management strategies underpin its performance for investors,” says Horne. “We are ready to put Broll’s knowledge, skills and experience into action to assist SA Corporate to achieve its performance objectives. We look forward to creating a long term value adding partnership with SA Corporate.”