By Sibonelo Radebe
 
Property services group Gensec is looking outside SA's borders for ways of increasing growth of assets under its management. It will use SA businesses invested in foreign markets as a springboard.

The group launched a branch in Namibia last week. It will begin operations on the base of a R1-billion portfolio featuring SA concerns such as JSE-listed property loan stock company MICC and its founding parent, Sanlam, as well as Namibian ones.

Though this may be a proactive expansionary strategy for Gensec, it could also reflect the strengthening of competition in the local property services market.

Gensec came out of Sanlam's in-house property services division and launched itself in the open market. It did so in the hope there would be growth potential in the trend of private corporations and the public sector to outsource noncore activities such as property and facilities management.

The portfolio under Gensec management is quoted at R12-billion, more than R8-billion of which is accounted for by the properties of Sanlam. That makes it the fourth-largest property management firm in the country after Broll, Investec and Old Mutual Properties.

Old Mutual Properties was first to sell its services abroad by launching in Lesotho and then the Middle East and Eastern Europe.

"The time is right to join the drive by SA businesses into new territories in Africa," says Gensec CEO Marna van der Walt. "The need for someone on the ground to manage their facilities is growing."

She says Namibia is a good choice for Gensec's African expansion because its properties, like SA's, are generally well-maintained and have low vacancy levels.

Similarities in the Namibian business infrastructure will also make it easier for Gensec.

Financial Mail

Publisher: Financial Mail
Source: Inet Bridge