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May 16, 2008:
Property services group JHI announced on Tuesday its results for its first year of operation after merging with Gensec and the company has shown substantial growth during this year with R31bn in assets under management.
CEO Marna van der Walt says the company is well-positioned for further growth and the team is determined to deliver a 15% to 20% year-on-year (y/y) growth in 2008.
The merger of Gensec and JHI in February 2007 saw the company increase assets under management by 30%. Subsequently, organic growth has provided an additional 30% to the asset base. This growth is mainly attributed to being awarded the management of the Pangbourne Groups' Property Funds and other smaller portfolios. The company now has 7,7m sq m under management.
The portfolio now includes approximately 225 shopping centres, including regional shopping centres such as Greenstone, Kolonnade, Fourways, East Rand, Chatsworth and Shelly Beach, as well as 515 office and corporate premises and 295 industrial properties.
Over the last 14 months the property portfolio has grown from 300 to 1,035 buildings and from 6,000 to 12,700 tenants in the same time period. The company's staff compliment has grown from 292 to 612 staff members.
The BEE shareholding has been bedded down resulting in the company now being 51% black-owned. "This now adds real weight to our growth strategy in government, parastatal and corporate market sectors."
The company's geographical footprint has also extended significantly and the company is now operating in 13 national locations, nine African and some Middle Eastern locations.
"Our core business is still property and retail management, including the leasing of our managed portfolios in South Africa. Facilities, project and development management, valuations and broking are starting to add meaningful value to the bottom line," says Van der Walt.
And what about township markets? Executive director Rassie van Niekerk says these are a growth market for the company. "We already manage many township properties, and the more the residential markets take off in the townships, the more demand there will be for managed office space."
Looking forward to the second half of 2008, Van der Walt says the property market has cooled down and is coming under pressure.
Les Weil, JHI chairman, is just as optimistic. "Historically, it was those investors who took risks back in 1998 when rates were high who made their fortunes later. The easy money is made by the early birds, so those who get in now will be the ones who make it next time around," he says.
