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The day-to-day property management of the Redefine portfolio
has to date been outsourced to Broll Property Group (Broll).
The contract terminated on 31 August 2010 subject thereafter
to three calendar months’ notice for cancellation.
During the year to 31 August 2010, Redefine announced
its decision to internalise the property management function
of its portfolio, Broll was given notice of termination,
and the process of migrating the function to Redefine
commenced.
Click
here for the official letter notifying tenants
of the change.
Click
here for the official bank letter confirming
change of banking details.
In addition to creating the potential for significant
annual savings, the substantial change in strategy was
necessary to improve service levels to tenants, and better
controls were required to improve the accuracy and frequency
of management information and to streamline business processes
and efficiency to enhance profitability.
The change will result in Redefine having direct control
over the operational management of the properties as owner,
which is expected to reinforce direct relationships with
tenants, and improve turnaround times in decision making
and service delivery.
Broll employed the services of four property managers,
BKD Trading, Isivuno Properties, Primecare Properties
and Top Services Properties, to assist with the management
of a portion of the portfolio. Internalisation of these
four managers commenced from 1 July 2010.
Total take-on is anticipated by 1 March 2011, and a portion
of the costs in respect of internalisation will be incurred
during 2011.
The properties making up the ApexHi portfolio, which
were integrated at the time of the merger, are managed
by Broll in terms of a separate contract, which expires
in June 2012. As part of Redefine’s restructuring process
in which all properties are being transferred from subsidiary
companies to the holding company, the ApexHi properties
will become internally managed by Redefine as and when
transfers are effected.
IT system
In early 2010, Redefine commissioned the design and implementation
of a sophisticated IT system required to administer the
property portfolio. Through automated reporting, the state
of the art system provides efficient, meaningful and accurate
information enabling staff to make effective decisions.
The IT system comprises five integrated programmes including
the leading South African property management system,
a business process management system, a document management
system, a business reporting and analytical tool and the
payroll and performance management system.
Staff
Redefine appointed asset manager Pieter Strydom to head
the property management division, and financial manager,
Aaron Suckerman to head the property management finance
division.
In terms of Section 197 of the Labour Relations Act,
Redefine is obliged to replace Broll as employer of the
230 staff employed exclusively for the Redefine portfolio.
The utilities management division was first to be transferred
to Redefine on 1 July 2010, and the remainder of the staff
will transfer as the management of the portfolios are
assumed by Redefine. This process has ensured a smooth
transition and business continuity. Redefine will also
employ additional specialists not currently employed by
Broll to further enhance key areas of the business.
At 31 August 2010, the property management division employed
48 staff.
Contact centre
To improve service delivery, Redefine has established
a contact centre as a single point of contact for its
tenants to raise queries relating to maintenance, accounts
and general customer service.
The contact centre has been operational since September
2010.
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