Real Estate Investor Magazine South Africa July 2014 | Page 43

COMMERCIAL
Five Divisions Necessary For Successful Companies

Diagram 1: Five core divisions
Once these five divisions are optimally linked, and
provided that each strategy is comprehensively and
correctly implemented, a company will succeed. Of
course, the company must achieve the best returns
possible – higher than competitors – and this is where
the integration of the overall strategy and the property
portfolio strategy becomes not only relevant but,
indeed, critical.

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Whereas overall strategy for a company falls under
block 1 in diagram 1, above, property strategy and the
manner in which the property portfolio is managed
falls under block 5 in diagram 1, above.
Process for the best company strategy
• Defining optimal core business
• Defining investment strategy
• Defining growth constraints
• Defining risk across each risk category and
establishing a risk profile
• Creating equity and financing structures
• Establishing optimal legal, financial and tax (gr