Black Company Gets Welkom Centre

The only wholly black owned property management company operating on a national level has won the contract to manage a top Free State shopping centre.

Hermans & Roman Property Solutions took over management of the Liberty Shopping Centre in Welkom on June 1.

Kevin Roman, co-founder of Hermans & Roman Property Solutions, said "We are especially delighted to have secured the contract to manage the Liberty Shopping Centre as it is significant for us.

"This the first shopping centre in which our investment vehicle, Hermans & Roman Property Investments 1, has a stake. The vehicle is directly linked to our staff trust, designating a percentage of its shares to the trust. Shares do not vest in individual staff members but in the property investment vehicle, from which the staff benefit by no other consideration other than their employment at Hermans & Roman.

"This investment in the Liberty Shopping Centre will accelerate our objective of creating wealth for our employees, leading to increased staff motivation and improved client service," said Roman.

'We are greatly looking forward to improving relationships between tenants and landlords, identifying specific marketing requirements for the centre and satisfying the needs of the catchment area."

The centre has more than 14 000 square metres of retail space and 656 underground parking bays. It provides a range of shopping options to local residents. The expansion of the shopping centre is currently being investigated.

Leslie Hermans, co-founder of Hermans & Roman Property Solutions, said, "The centre is ideally situated in the heart of the central business district and is a one-stop fashion destination. It is the biggest in Welkom, and the only covered shopping facility with underground parking.

Retail is coming into its own, as the latest figures from e-Prop's Macro Commercial Property Barometer show: while commercial property rentals across the country increased by 13% in the year from May 2005, retail boasted an increase of 36%. In the Western Cape alone, retail grew by a staggering 87%.

"The commercial property market definitely assures a certain investment option, with retail being the fastest-growing sector," asserted Hermans.

"Retail is driven by expansion and an increase of products on the markets. So the need for various manufacturers, distributors and retailers to grow their brand and products is supporting the demand for retail space," he explained.

Hermans is quick to point out that this expansion does not only apply to national tenants: "Smaller tenants, such as independent operators, definitely also come into play."

And the most fashionable new kid on the block, says Hermans, is the proliferation of smaller neighbourhood malls of up to 25 000 square metres, offering shoppers more than just day to day requirements.

Source: Property24 - www.propert24.co.za

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