Real Estate Investor Magazine South Africa July 2014 | Page 44

STRATEGIES

Properties must reflect the company’s ethos, image
and branding and, for this reason, it is necessary to
align the use of the company’s property portfolio with
the overall strategy.
Examples: aligning fixed property use with overall
strategy
• Sell vacant land and underutilised property so as to
repatriate the proceeds into the core operations
• Combine operations into a single building in order to
enjoy the benefits of economy of scale
• Ensure that each property exudes an exemplary
branding so as to promote a positive perception of
the company
• Ensure that the return achieved from each premises
is higher than the overall return of the company

Property management strategy
Once the decision has been taken to align the use
of properties with the overall strategy, the next
requirement is to ensure that the properties are being
managed optimally. Diagram 2 provides a schematic of
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July 2014 SA Real Estate Investor

the seven requirements of property management.
Diagram 2: 7 functions of an optimally managed
property portfolio
Each of these seven functions requires the rollout of
a defined set of tasks to ensure the maximum benefit
to the property owner or renter and to enhance
the company’s return through the sound use and
management of the property.

Measuring return
Measuring the current and potential return on a
property portfolio as it is transformed into an integrated
and well-managed enterprise will reveal just how much
additional value can be achieved.
From a strategic perspective, selling (perhaps on a
lease-back scenario) underutilised land and buildings,
developing virgin land, enhancing customer and
employee satisfaction and productivity and managing
a portfolio in an exemplary manner can vastly improve
a company’s overall return.

RESOURCES

Courtwell Consulting
www.reimag.co.za