Empowerment firm Motseng in R2bn venture

Posted On Monday, 05 August 2002 10:01 Published by
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Marriott Property Services and black empowerment firm Motseng Investment Holdings have launched a 50-50 joint venture property management operation
Marriott Property Services and black empowerment firm Motseng Investment Holdings have launched a 50-50 joint venture property management operation.

To be called Motseng Marriott Property Services, the joint venture kicks off with a R2bn property portfolio under management, making it the biggest black empowerment property management firm in SA.

This deal adds to a string of black empowerment deals concluded in the past few months as big players prepare to bid for the expected lucrative government contracts.

Mvelaphanda Holdings, the empowerment group led by Tokyo Sexwale, announced last week the acquisition of 50% of Broll Property Group, the largest property services company in the country.

Motseng Marriott MD, Sandile Nomvete, said unlike other initiatives, the new venture did not simply represent an empowerment investment in an existing property management company.

'We will be rolling up our sleeves and through a process of integration provide a holistic property management service,' said Nomvete.

Motseng was established in 1998 by Nomvete and Ipeleng Moloto as a property services operation providing cleaning services, security and waste management.

Motseng holds 20% of security company Enforce Guarding, 100% of Motseng Cleaning, and 70% of Phosal Lliso Enforce and Shanela Environmental Management.

Nomvete said the firm recognised the need to enlarge its base into property management seeing good future prospects in this sector.

Marriott Property Services is a subsidiary of Marriott Group, which boasts 140 years' experience in the business of asset management and property.

'The SA property industry has long been seeking the entry of a meaningful property services player able to service increasing demand for empowerment expertise in the property industry,' said Marriott Property Services MD Craig Ewin.

The property services offered by Motseng Marriott will include the administration of commercial, industrial and retail properties held by government, parastatals, pension funds and other large investors.

Nomvete said the new venture expected to grow its portfolio by R1bn in the next 18 months.

Nomvete said once the foundations of the group in property management had been entrenched the company would consider growth into facilities management.

'Our vision is to be recognised as a genuine black empowerment company with emphasis on knowledge transfer and property skills development,' said Nomvete.

The property management industry could be bolstered by a new government property management strategy which seeks to unlock value out of the R120bn state portfolio.

Under the guidance of the public works department, the state has employed consulting services of a private-property experts consortium, whose advice will form the heart of government's new strategy.

Property management companies are lining up as this process is expected to deliver outsourcing of government's property management activities on a large scale.

Business Day

Publisher: Business Day
Source: Business Day

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