LIBERTY Properties MD Jim McLean has come out strongly against suggestions that institutions that maintain in-house property management services are less competitive than specialised property management houses.

McLean was reacting to comments in Business Day by some specialised property management firms that they have a competitive advantage over in-house service providers and that pressure is mounting for institutions to outsource their services.

'Contrary to the view expressed by Andrew Teixeira of JHI, through Liberty Properties, Liberty Group has for more than 30 years successfully been managing its own assets,' says McLean.

He says he is not aware of any property management agency that comes close to Liberty Properties' one-stop, in-house property management expertise.

McLean says Liberty Properties has decided to sell its expertise to third party property owners.

'Liberty Properties will for the first time be seeking suitable property portfolios, which are owned by property investors to whom we can offer the Liberty Properties tried and trusted core services of asset management and/or property management expertise,' says McLean.

'We would therefore never consider outsourcing for our own properties the services we consider our core business,' he says.

Teixiera says that while he believes that the future of business is in outsourcing and a greater focus on core business, one cannot make sweeping statements relating to services provided by in-house property managers versus those provided by specialised property management agencies.

'It all comes down to systems, skills and competency that an organisation commands,' he says. Teixeira had previously said that pressure was mounting for institutions to outsource their noncore activities, including property management.

Marriott Property Services director David Green says that while institutions appear determined to hold on to their in-house property management services, outsourcing is the future.

There is a substantial property portfolio outside the institutions that is being outsourced. These properties are held in listed property funds and small to mediumsized landlords.

Green says specialised property management agencies are bound to have a higher level of expertise than in-house property managers because they operate under a lot of pressure.

'Their business comes in shortterm contract form, and they know they can lose it if they do not perform,' says Green.

Property managers within institutions do not have much of that contractual pressure, he says.

In the meantime, RMB Properties reports that it has secured leasing deals worth R57,7m, covering 51450m², in the six months ended December last year.

This figure represents a 227% growth in comparison to the same period a year ago.