Management company spells out growth plans 
Nick Wilson

 
 
Independent black-owned national property management company Hermans & Roman Property Solutions aims to increase its assets under management by R2bn in two years.

The company, which was established in April 2002 by Cape-based property players Leslie Hermans and CEO Kevin Roman, has about R3bn of properties under management in a market where there is stiff competition from large players such as Broll and JHI Real Estate.

Roman says the company also manages the properties belonging to the South African National Roads Agency, as well as some properties for listed property companies iFour, Pangbourne and MICC Property Income Fund. It also manages some properties on behalf of institutions and private individuals.

Roman says that since the company’s inception in 2002, it had wanted to achieve R5bn under management by 2008.

He says business in the property management field is “extremely tough” because players often have existing relationships in the industry and “people don’t like to change”. The business relies on high volumes and low margins.

Roman says the company believes the growing listed property sector offers opportunities for property managers. In 2001 the sector’s market capitalisation was about R8bn, and now it is in the R60bn-R70bn range