28 Sep 2005 :

Pam Golding Commercial, a member of the global Pam Golding Property group, has launched a new division, Pam Golding Property Asset Management, which focuses on the investment and asset management areas of commercial property.

Operating nationally throughout South Africa as well as abroad, this new company is the result of a merging of the group's property management division with that of well-known Johannesburg based company, David Reid Property Services.  The business is uniquely placed because of its association with Gensec Property Services, a major player in the commercial property market in Southern Africa - and in which the PGP group has a 20 percent stake. Gensec manages approximately R12 billion's worth of commercial, industrial and retail property.

"The core business of Pam Golding Property Asset Management (PGPAM) is managing the portfolio of property assets on behalf of property owners - whether private individuals, corporates or institutions, and also facilitating private or syndicated investment," says Peter Golding, CE of Pam Golding Commercial and a director of PGPAM.  "Our key focus is unlocking value, by creating operational efficiencies mainly through rental and cost management, but also in terms of assessing and analysing factors such as tenant risk, property location, life-cycle status, negative impacts and other micro issues affecting the property eg general market or societal trends, including those towards up and coming/emerging or decaying areas," he says.

The new company is headed by David Reid, who has extensive experience in asset management, and who began his career as development co-ordinator and director for the Spar Group SA, overseeing the development and refurbishment of in excess of 100 new Spar stores in South Africa.  His experience includes that of management consultant at Deloitte & Touche, and subsequently senior development manager for Johnnic Commercial Properties where he remained for eight years before establishing his own property management company.

Reid was involved in the development of numerous prestigious projects including Alexander Forbes Place and Price Waterhouse building in Sandton, Holiday Inn Garden Court in Milpark, the Rosebank Grace Hotel, Taiwan Trade Building and Nantai Crescent in Rosebank, and the Glen Shopping Centre in Johannesburg South - the latter comprising 45 000sqm and with 160 tenants. These properties have a combined value of in excess of R4.5 billion.

Says Reid:  "The newly formed company brings together considerable experience and expertise to provide asset management and investment consulting services to owners of commercial properties and investors in property equities.  Understanding the market and intimate knowledge of the underlying property, coupled with astute and sound management of the property, is paramount to maximising returns. For large businesses or institutions with facilities around the country, and whose prime focus is not on property ownership, it makes sound business sense to outsource their asset management, or to consider the sale and leaseback of these properties in order to free investment capital for their core businesses," he says.

"Today there is a shortage of traditional investment stock and the ability to access new opportunities relies on extremely up to date information and the ability to move quickly when opportunities do arise. We currently have a number of keen investors, mostly local but also some overseas, who are seeking appropriate commercial property investments.

He adds:  "A trend which has emerged in the retail sector of commercial property reveals good potential for smaller or neighbourhood convenience shopping centres of 12 000 to 15 000 square metres. Ease of parking and essential customer care by tenants with unique features or amenities determine the success of such centres."