Pareto Limited has internalised its management to optimise performance and boost capacity to create positive relationships with its clients and partners and, importantly, to deliver improved service at its shopping centres.
Pareto is South Africa’s premier shopping centre investor and one of the country’s leading retail property players.
Marius Muller, CEO of Pareto explains: “We are reclaiming our communication lines to ensure the best experience for everyone, from shopping centre retailers and customers to retailers at corporate levels, our service providers and our own team.”
He adds that Pareto’s internalised management will drive long-term shareholder value and underpin sustainable performance from its portfolio. “It’s all about strengthening the value of our assets, for all our stakeholders.”
Pareto owns a portfolio of regional and super-regional shopping centres. It is the full owner of Cresta Shopping Centre, The Pavilion in Durban, Mimosa Mall in Bloemfontein, Southgate Mall and Value Market and Westgate Regional Shopping Centre, both in Gauteng. In Cape Town it owns Tyger Valley Shopping Centre. It also owns a 50% stake in Cavendish Square, also in the Mother City; and, a 50% stake in Menlyn Park Shopping Centre in the East of Pretoria.
Pareto holds 25% of Sandton City and its surrounding assets including the Sandton Convention Centre and three hotels: The Sandton Sun, The InterContinental Johannesburg Sandton Towers and Sandton Garden Court. The group manages all five of its wholly-owned shopping centres and will take over management responsibility of Tyger Valley Shopping Centre from September 1
It has geared up its capacity to put this new model in place, both at head-office level and at its malls, over several years.
“As part of our move to internalise the management of our properties to optimise performance, we identified Pareto employed people in certain positions over and above what we expected a property manager to deliver,” explains Muller.
This was the catalyst for Pareto to set up an in-house management team.
Pareto’s head office management model duplicates its mall management structures, creating clear channels of communication and information flow. “This way, our strategic intention and our execution are aligned,” says Muller.
In addition, the new management structure positions Pareto to better benefit from important insights gleaned from its aggregated information. It also advances quality performance, professionalism, good execution and standardisation.
“We want to deliver the best service possible. We believe that our internalised management structure supports this. It also creates an environment that fosters excellence and supports every member of our team to be the best they can be at what they do,” says Muller.
He adds that Pareto’s strength lies with its people. “Our internal management model puts us in a better position to empower people and give them an opportunity to shine.”
While cost-cutting for its retail property management isn’t the aim of adopting the new structure, Muller expects there will be some savings because of the change. “Any savings will be reinvested into our shopping centres through our head office support structure.”