Property Management
The Corporation's Property Management Division was established in
February 1991 to maximise the commercial return of the Corporation's
extensive, nationwide property portfolio. However, it sees its role
to be that of the custodian of the people's property.
A balance therefore has to be struck between the exploitation
of the property for pure financial gain and the social responsibility
of improving commuting facilities and answering community needs.
This social obligation has been firmly entrenched in the management
strategies of the division.
To meet these challenges the starting point naturally had to
be to acquire the necessary specialist management and business
skills. To this end a closely-knit nucleus of experts has been
assembled, all with tremendous enthusiasm and energy for the commercialisation
of the property management function.
In keeping with the sound business practice of minimising overhead
costs, management implemented a structure plan which included
the maximum utilisation of networking and franchising facilities.
This policy to use private sector expertise from both the formal
and informal sectors not only minimises the staff levels and administrative
burdens of the division but also once again addresses its social
responsibility to create job opportunities.
The past year has been a challenging and fruitful one. The main
emphasis has been to establish a sound business base and strategies
to see the division into the future with optimal efficiency.
Its initial task was to assess the full extent, status and develop-ability
of the Corporation/s land holdings. This assessment uncovered
a vast potential of financial benefits, as well as opportunities
for the enhancement of community and infrastructural facilities.
However, it was found that the systems and operational procedures
which were in existence were not suitable to readily exploit this
potential. These therefore were given a very high priority during
the year.
In spite of the above emphasis, numerous development projects
were initiated and completed, some of them having a great community
service value such as the luxury bus terminus at Rotunda in central
Johannesburg. Strong cognisance has been taken of the necessity
to provide vital facilities for the inter-linking of the different
modes of transport.
Operational facilities have also been able to be rationalised
through these developments, often cross-subsidising Metro facilities
with private sector development funds. An example of this is the
sourcing of a private sector sponsor for the train time tables
on the stations, which resulted in a considerable saving of state
funds.
Certain developments have been channelled into development facilitation
companies in order to maximise input from the private sector.
The most significant of these at present is the Johannesburg Tourist
Trade and Convention Centre (Pty) Ltd. On the other hand, there
are a number of national monuments within the portfolio. These
have to be handled with great sensitivity to ensure that their
historic and cultural value to the country's heritage is maintained,
while simultaneously exploiting them to their maximum commercial
potential.
During the year the division pioneered a consultative planning
methodology of comprehensive, pro-active collaboration with private
sector interest groups, particularly in Soweto where it has its
largest market. This Public Involvement Programme ensures that
the widest possible community needs are addressed in the division's
activities.
The division's new developments have not precluded it from also
considerably rationalising and enhancing the substantial bill
board advertising portfolio it has within its control.
The net result of all these initiatives has been the successful
generation of income to 30% over the budget for the year and almost
47% over the previous year's income.
The road ahead includes the implementation of a national branch
network. This will once again be structured on the principle of
retaining only a core team who will in turn facilitate business
through the private sector. The division's management will ensure
that the Corporation's property holdings are exploited in such
a way that a meaningful contribution is made to the communities
which are served by the Corporation while simultaneously significantly
reducing the State's subsidy of the rail service.
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