JSE-listed SA Corporate Real Estate Fund on Monday said it had awarded the contract for the property management of its entire portfolio to property group Broll, effective from July 1.
SA Corporate’s portfolio comprises 139 properties, covering 1.19-million square metres of lettable area, independently valued at R8.1-billion as at December 31, 2012.
Receiving the property management contract brings Broll’s assets under management to R61-billion, of which R12-billion is outside South Africa’s borders.
Broll indicated that it would create a separate business unit for the SA Corporate portfolio and that a take-on team of 42 people would use May and June to prepare for the effective date, when an experienced property management team, with extensive group support, would take over.
Broll’s property under management has grown by some R13-billion in assets in the last 18 months.
The firm boosted its technical capabilities by acquiring WSP Group Africa’s facilities management unit. It also grew its broking and transaction teams and invested in supporting infrastructure and systems.
“SA Corporate’s property management strategies underpin its performance for investors…We are ready to put Broll’s knowledge, skills and experience into action to assist SA Corporate to achieve its performance objectives. We look forward to creating a long-term value-adding partnership with SA Corporate,” Broll CEO Malcolm Horne said in a statement.