Following the merger the enlarged Old Mutual Property Group will have assets under management of 32 billion rand, making it South Africa's largest property management business.
"Our focus is on property asset gathering, asset management and providing services to property owners and managers," said Kodisang.
"Our aim is an enhanced offering to clients and tenants and to grow assets under management to 100 billion rand over the next five years through access to new markets and to funds that can buy our development and acquisition activities. We want to create large, liquid listed funds."
"In combining the businesses, the group will be deploying all employees across divisions for listed securities fund management; listed companies and institutional property asset management; international; and third party property service businesses. Organising the divisions is now proceeding according to a defined plan aimed at achieving a smooth transition."
Kodisang explained that, under listed securities fund management, Marriott Asset Management and The Income Specialists will remain as a stand-alone business within the group. The division's activities will include management of Marriott unit trusts and the Old Mutual SA Quoted Property Unit Trust.
A second division will manage the listed companies - Martprop, SA Retail, Ambit and Oryx - and a third will manage the Old Mutual institutional portfolios.
The international division will continue the drive to provide development, property management and advisory services beyond the substantial involvement in Saudi Arabia and India where joint ventures are in operation.
Third party property service businesses include property management, valuations and facilities management, the Office Suites Company - a provider of executive office services - and operations focused on the retail property industry. These are Point of Presence Communications, specialists in mall advertising and Lifestyle
Communications, which provides marketing and promotional services for retail centres.
Simon Pearse, CE of Marriott, said Marriott will gain from the strength of Old Mutual's retail distribution network and have greater exposure to the retirement funding market through Old Mutual's corporate distribution capability.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
