Real Estate Investor Magazine South Africa September 2014 | Page 46

GETTING STARTED

A Conceptual Framework For
Property Asset Management
1. Pre-acquisition strategy development
1.1 Defining stakeholders’ goals, objectives
and constraints
1.2 Defining the acquisition strategy of

the fund
1.3 Defining the legal and financial profile

of the fund
1.4 Defining the tax strategy of the fund
1.5 Selecting alternative acquisition targets
10. Termination (handover) process
10.1 Compiling the handover checklist
10.2 Supervising the handover process
10.3 Ensuring that control is timeously and
comprehensively relinquished
9. Redevelopment assessment and strategies
9.1 Identifying redevelopment, growth and
site-assembly opportunities
9.2 Identifying the optimal tenant mix for
the intended redevelopment
9.3 Preparing redevelopment feasibilities
9.4 Preparing legal, financial and tax
strategies for the redevelopment
9.5 Implementing a redevelopment
9.6 Negotiating the additional leases
9.7 Ensuring the correct capture of
additional leases
8. Exit yield initiatives
8.1 Identifying the exit yield of a building
or portfolio
8.2 Identifying the most appropriate exit
strategy
8.3 Implementing the most appropriate
exit strategy
8.4 Supervising the legal process of the elected
exit strategy
7. Annual technical audits
7.1I dentifying the lesser and lessee liability
within a lease agreement
7.2 Conducting a comprehensive technical
assessment
7.3 Preparing a technical exception report
7.4 Implementing a corrective programme
for technical exceptions
46

September 2014 SA Real Estate Investor

2. Risk reduction strategies
2.1 Identifying the risks associated with
each tenant, building and portfolio
2.2 Identifying the appropriate risk
reduction strategies for each risk
2.3 Implementing the appropriate risk
reduction strategies for each risk
2.4 Assessing the success of each risk
reduction strategy

The Fund
Management

Life
Cycle
6. Annual lease integrity audits
6.1 Identifying invalid and unenforceable
legal agreements
6.2 Verifying data captures
6.3 Assessing and identifying recoverable
values
6.4 Identifying under- and over-recoveries
6.5 Implementing a corrective programme
for legal exceptions
6.6 Implementing a corrective programme
for financial exceptions

3. Acquisition process
3.1 btaining and executing the option to purchase
3.2 Conducting a comprehensive legal, financial,
technical and risk due diligence review and
value extraction analysis
3.3 Identifying the correct purchase yield
3.4 Negotiating the correct (optimal)
purchase price
3.5 Negotiating the correct purchase structure

for value
3.6 Preparing the Competition Commission
application
3.7 Preparing the JSE application documentation
3.8 Drafting the final acquisition documentation
3.9 Supervising the legal administration related to
the purchase
3.10 Implementing the purchase transaction
4.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8

Take-on process
Developing the take-on checklists
Collecting the take-on information
Ensuring the building and lease data is
correctly captured
Assessing supplier and contractor contracts
Conducting the initial (take-on) inspection
Preparing take-on budgets
Matching the management requirements with
the management personnel
Identifying improved tenant mixes and
developing a letting and renewal strategy

5. Strategising renewals and new lettings to
match expiry profile
5.1 Identifying the expiry profile of the building
and the portfolio
5.2 Identifying optimal strategies for the renewal
of lease agreements and the reletting of
premises
5.3 Implementing tenant retention strategies
5.4 Identifying optimal tenant mixes
5.5 Identifying appropriate marketing strategies
for vacant premises
5.6 Implementing marketing strategies to let
vacant premises

RESOURCES
Courtwell Consulting
www.reimag.co.za