THE FIRST CHOICE PROPERTY SERVICES GROUP THROUGH SERVICE EXCELLENCE

Transcription

1 THE FIRST CHOICE PROPERTY SERVICES GROUP THROUGH SERVICE EXCELLENCE C O R P O R A T E P R O F I L E

2 P02 Overview Heritage Ownership P03 Group at a Glance Management Structure Affiliations & Membership P04 Employment Equity Enterprise Development P05 Social Responsibility Graduate Programme P06 MAREF MAREF Portfolio Under Construction Mission Statement: To be the first choice property and services group through service excellence, which is highly evident in our innovative nature. P07 Momentum Property Opportunities Fund index P08 Services P09 Property Development Property Management P10 Listed Sector & Investment Property Advisory Services P11 Trading and Investment Asset Management P12 Leasing & Investment Broking Property Valuation P13 Retail Service Facilities Management P14 Property Development Awards / Achievements P17 Clients

3 OVERVIEW Eris Property Group (Eris) is a fully integrated property development and services group which provides a range of commercial property skills in the South African and sub-saharan African markets. AT A GLANCE STRUCTURE 03 HERITAGE Eris believes that the success of the company is dependent on its people, its reputation and capital. Eris strives to be market leaders in our industry by applying our core values such as professionalism, integrity, staff excellence, innovation and equity. We aim to add value to our clients as a multiple of our earnings. Portside Cape Town m² CEO Warren Schultze EXECUTIVE DIRECTOR FINANCE Warren Gers EXECUTIVE DIRECTOR PROPERTY DEVELOPMENT Barend de Loor HEAD OF ASSET Sudesh Moodley HEAD OF PROPERTY Peter Stainton GENERAL MANAGER TRADING & SPECIALISED FINANCE Vuyani Bekwa Eris was formed in 2008 following the restructure of RMB Properties (Pty) Ltd (RMBP) a subsidiary of Rand Merchant Bank, which was a prominent property development and property services company in the South African property industry since In 2012, Eris undertook another step in its evolution with MMI Holdings becoming a major shareholder. This strategically places Eris in a prime position for growth in South Africa and Sub-Saharan African markets. EXECUTIVE DIRECTOR PAS, LEASING & INVESTMENT Hugh Basel GENERAL MANAGER RETAIL Samantha Nel HEAD OF VALUATIONS Claire Everatt COMPANY SECRETARY Martin Harris AFFILIATIONS AND MEMBERSHIPS ERIS PROPERTY GROUP OWNERSHIP Our affiliations and memberships include the following prominent organisations in the property industry: 73.75% MMI HOLDINGS LIMITED 26.25% ERIS MMI Holdings Limited (MMI) is a South African based financial services group listed on the South African stock exchange, the JSE. The core businesses of MMI are long and short-term insurance, asset management, savings, investment, healthcare administration and employee benefits. These product and service solutions are provided to all market segments through operating brands Metropolitan and Momentum. SAPOA South African Property Association SACSC South African Council of Shopping Centres GBCSA Green Building Council of South Africa WPN IPD ZURI Women s Property Network Investment Property Databank Workspace Solutions NUMBER OF STAFF MEMBERS 362 NUMBER OF OFFICES 07 VALUE OF PROPERTIES UNDER R24,3 BILLION TOTAL GLA OF PROPERTIES UNDER SQM NUMBER OF TENANTS MONTHLY BILLINGS R254 MILLION CLIENT BASE 36 DIVERSE CLIENTS VALUE OF PROPERTIES DEVELOPED SINCE 1993 R32 BILLION GLA OF PROPERTIES DEVELOPED SINCE ,7 BILLION SQM NUMBER OF PROJECTS DEVELOPED WITHIN RSA BORDERS SINCE NUMBER OF PROPERTIES DEVELOPED OUTSIDE SOUTH AFRICA 10

4 04 EMPLOYMENT EQUITY B-BBEE LEVEL % PROCUREMENT SOCIAL RECOGNITION LEVEL CSI RESPONSIBILITY The need to assist those less fortunate is aligned to, and entrenched in the culture and spirit of all Eris employees. 1% of the company s Net Income is allocated to fund initiatives that are sourced, implemented and driven by a voluntary internal committee. Staff members are encouraged to suggest causes to be assessed and driven by the committee and staff volunteers. Preference is given to projects that will improve the welfare of previously disadvantaged communities. SOME OF THE BENEFICIARIES ARE Villa of Hope Oliver s House Angel Link Laura Vicuna Educational Centre Nkosi s Haven All Saints Ennerdale Action for the blind Home of Hope Rally to Read 9 Fredman Drive Sandton m² ENTERPRISE DEVELOPMENT Due to the company s involvement in the Property Development and Property Management arena, we have access to a wide range of skills in carrying out our business. Opportunities are continuously being sourced to assist individuals, or small start-up companies, through direct monetary assistance, preferential procurement and the co-ordination of the transfer of skills. ERIS PROPERTY GROUP GRADUATE PROGRAMME Eris Property Group s graduate programme started in Every year 6 graduates are selected from universities in Gauteng to join the company s 12-month programme. The programme entails a graduate being placed in our different divisions over the period, offering graduates maximum exposure to all facets of the property industry. Menlyn Podium - Phase 1 Tshwane 9 341m² Eris Property Group also offers a contact counsellor who is a registered Chartered Surveyor with the Royal Institute of Chartered Surveyors (RICS) who can assist graduates with registering and attaining their RICS registration. 05

5 MOMENTUM AFRICA REAL ESTATE FUND (MAREF) MAREF PORTFOLIO UNDER CONSTRUCTION 01 MOMENTUM PROPERTY OPPORTUNITIES FUND Momentum Property Opportunities Fund will consist of special property opportunities developed by Eris Property Group specifically for this fund. Eris Property group is the Investment Manager for the fund. The Fund may invest in South Africa, Botswana, Namibia, Lesotho, Swaziland, and any other SADC country that may be approved by the Investment Committee. 07 MAREF is an African commercial real estate development joint venture between Momentum Global Investment Management in London and Eris Property Group. The fund objective is to achieve income and capital growth by investing in developments and holding these until the target returns are achieved. The projects are de-risked through inter alia, due diligence on land, a guarantee on project costing from the developer, minimum pre-let requirement and obtaining a term sheet for funding. Eris is the fund advisor to the $170 Million MAREF fund. Eris believes that investing in the development of commercial real estate is an exciting way for investors to support and participate in the rise of the African consumer. MAREF is aimed at long-term institutional investors as a capital growth offering. Our approach is to identify partners in sub-saharan Africa to assist us and participate economically in projects wherever possible, and we are seeking to expand our partner base. MAREF s focus is on eight countries in the main areas that have shown consistent economic growth in excess of 5% for the past years. 02 FUND FACT SHEET PERFORMANCE TARGET 16% 16% after fees & taxes in ZAR FUND SIZE R315 MILLION (committed to capital) MAREF AT A GLANCE INVESTMENT MANAGER Momentum Africa Investment Management Limited INVESTMENT ADVISORS 18% PERFORMANCE TARGET net IRR in USD after tax & fees FUND SIZE $170 Million of equity investment *23% of the $170 Million is currently committed to projects Eris Property Group (South Africa) Momentum Global Investment Management (London) BASE CURRENCY USD INVESTIBLE UNIVERSE TARGET INVESTMENT PORTFOLIO $420-$450 Million Geographic focus - Sub Saharan Africa ex SA: focus on Ghana, Kenya, Nigeria, Mozambique, Rwanda, Uganda, Tanzania, Mauritius & Zambia Asset composition - Development & management of retail, office & industrial premises Project: SU Tower, Accra, Ghana Project Size: m 2 Offices Project Value: $43 Million Completion: Nov 2018 INVESTMENT UNIVERSE 75% 25% SOUTH AFRICA SECTORS EXCLUDING SOUTH AFRICA INVESTMENT HORIZON 8 YEAR TERM + 2 YEARS EXTENSIONS TARGET R2 BILLION RISK PROFILE MEDIUM TO MODERATELY AGGRESSIVE Industrial Retail Offices Student Leisure Accommodation 06 INVESTMENT GUIDELINES 45% single country limit 20% single tenant limit 25% single property limit 35% single construction firm limit FUND DOMICLE Mauritius LEVERAGE 40-60% (subject to top 3 not > 50%) Project 335 Place, Accra, Ghana Project Size: m 2 Offices Project Value: $40,2 Million Completion: Aug 2018 Project: Business Gateway Mon Tresor Phase1, Mauritius Project Size: m 2 Offices Project Value: $11,5 Million Completion: May 2018 PROPERTY COMPLETED EQUITY REQUIRED % SHAREHOLDING MAKRO CARNIVAL R32,1m 50% LIVE PROJECTS EQUITY REQUIRED % SHAREHOLDING Fincorp, Swaziland R31,6m 100% Umgeni CTM, Durban R6,9m 50% Umgeni Zebbies, Durban R2,9m 50% TOTAL INVESTMENTS R76,2m TOTAL COMMITTED (MPOF) R315m

6 SERVICES Eris understands that all levels of property related decisions are critical to the long term success of all stakeholders; our attention to detail ensures optimal and efficient solutions. 102 Rivonia Sandton m² Fairlands Office Park Johannesburg m² The full spectrum of property services we offer include: Property Development PROPERTY DEVELOPMENT PROPERTY Property Management Listed Sector and Investment Property Advisory Services Trading and Investment Asset Management Leasing and Investment Broking Property Valuation Retail Service Facilities Management The Eris property development team undertakes projects as a principal for its own account and also for third party investors. The development division focusses on green and brownfields projects, including refurbishments and development consulting success where appropriate. The Eris development team has proven itself to be amongst the best in the country with a track record that we are extremely proud of. We have successfully completed large-scale developments across Southern Africa and in numerous African countries. Eris approaches each property with the aim of increasing long-term value whilst ensuring maximum operating efficiency. Unlocking the potential of a property requires a combination of experience, expertise and vision. The property management division endeavours to maximise net income through increasing rental income, reducing vacancies, minimising operating expenses and minimising arrears. Eris has developed its own proven IT management system that makes in-depth and customised property management and reporting possible. Eris implements a hands on approach, taking into account each property's unique requirement. 102 Rivonia Sandton m² 09

7 PROPERTY ADVISORY SERVICES TRADING AND INVESTMENT ASSET The Property Advisory Services (PAS) division with Eris provides corporate real estate advice. Eris understands that all levels of property related decisions are critical to the long term success of all stakeholders; our attention to detail ensures optimal and efficient solutions. Through our involvement in the property industry, we are continuously aware of market conditions, market movement and acceptable market terms on property transactions in order to align client s usage of property with the business practices and financial objectives. TRADING Eris undertakes property trading and investment activities as a principal and in joint venture with third parties. The Trading & Investment division has access to resources within Eris across the range of property service disciplines that enables it to effectively unlock the potential of a given property. Our Trading team focuses on acquiring properties for resale, and aims to identify properties that are underperforming or offer opportunity for redevelopment. Our vast knowledge base and the utilisation of interdivisional skills transfer allows us to identify opportunities that may be overseen by others. INVESTMENT Eris also selectively acquires quality property assets for inclusion in its investment portfolios. The team is currently rolling out a number of private equity funds in both local and select African markets. The team is responsible for the management of the Momentum African Real Estate Fund (MAREF), a private equity fund focused on select African countries and MPOF within South Africa and approved SADC countries. The Property Asset Management team strives to optimally manage client s property portfolios to achieve their maximum potential. Our highly experienced team focuses on achieving superior returns by unlocking value enhancing opportunities within the portfolios such as refurbishments, redevelopments, re-tenanting, strategic acquisitions/disposals and cost savings initiatives. Eris Property Asset Management has been entrusted with the property asset management of listed funds, large corporates and private property funds. Our solid track record and professional, hands on approach to asset management places us in ideal position to deliver exceptional results. FNB Contact Centre Randburg m² LISTED SECTOR AND INVESTMENT Eris has actively promoted and initiated activity in the listed sector, both in South Africa and neighbouring countries. Listing of the Emira Property Fund in 2003 with initial assets of R1,65 billion. Facilitation of the sale of property assets totalling R275 million into the Arnold Property Fund, subsequently re-named Freestone Property Holdings. Merger of the assets of Freestone and Emira in Emira currently has assets of R12,7 billion, with 145 properties and a market capitalisation of R8,7 billion, making it one of the top ten funds by market capitalisation. Facilitation of the sale of R145 million from Botswana Insurance Fund Managers to Turnstar Holdings in Creating of Eris Property Fund in 2010 with assets of approximately R900 Million. 10 Menlyn Corporate Corner Pretoria m² Airport Junction Botswana m² The Marc Sandton m²

8 PROPERTY VALUATION Our team of registered valuers offer a professional valuation service in the valuation of land, commercial, retail and industrial properties. This specialist division currently undertakes the valuations of institutionally and privately held property. Eris has been entrusted with the valuation of prominent properties throughout South Africa and our geographic coverage allows us to assist clients in every region and into Africa. The Eris valuation division makes use of sophisticated valuation software, this combined with our vast experience has placed us in a unique position to accurately value any property regardless of its complexity. Corobay Corner Menlyn, Pretoria m² Tsumeb Mall Namibia 9 700m² Merchant Place Sandton m² LEASING AND INVESTMENT BROKING Eris Broking Division consists of experienced and highly trained property consultants. Our handpicked team of property professionals are on standby to assist our clients with rentals, acquisitions and disposal enquiries. Eris understands that spatial requirements and investment decisions are critical to the long-term success of all stakeholders; our attention to detail ensures optimal and efficient solutions. The Eris Leasing Division aims to gain a keen understanding of our tenant s requirements before embarking on sourcing the ideal premises. Upon the sourcing of a desirable location and building suitability for the client, Eris is in the position to advise, negotiate and process the terms of the lease in a seamless and efficient manner. Portside Cape Town m² The Eris retail division understands that retail fundamentals are dynamic and constantly changing. It is vital to keep up to date with shifting demographic profiles and the evolution of the customers buying behaviour. The professional team of retail consultants focuses on unlocking the potential of neighbourhood, community, specialist and regional centres. The retail division has access to unrivalled intellectual capital within the Eris Group and constantly taps into the vast resources at its disposal. RETAIL SERVICE Eris seeks to maximise the objectives of the investor and retailer by creating a vibrant retail experience for customers with an innovative tenant mix. Eris FM provides an integrated facilities management service to our clients that benefit from maximised efficiencies and cost effective delivery with a single point of contact. Our integrated service provides convenience and ease to clients with regards to invoice, delivery model and all services managed through one supplier. An integrated service offering allows us to streamline operational delivery, reduce back office and cut costs for the benefit of the client. FACILITIES We deliver all our technical, soft and business support FM services through one of the most sophisticated Computerised Facilities Management Systems (CFMS). This means no added financial burdens through networks of sub-contractors, or margin on margin overheads

9 PROPERTY DEVELOPMENT AWARDS / ACHIEVEMENTS FNB FREEDOM SQUARE, WINDHOEK, NAMIBIA 4 Star Green Star SA Rating for Office V1 Design Certification FNB, DURBAN, KWAZULU NATAL 4 Star Green Star SA Rating for Office V1 Design Certification 4 Star Green Star SA Rating for Office V1 As-Built Certification PORTSIDE, CAPE TOWN (OLD MUTUAL JV) 5 Star Green Star SA Rating for Office V1 Design Certification 5 Star Green Star SA Rating for Office V1 As-Built Certification 102 RIVONIA ROAD, SANDTON, GAUTENG 4 Star Green Star SA Rating for Office V1 Design Certification 4 Star Green Star SA Rating for Office V1 As-Built Certification MENLYN PODIUM PHASE 1, TSHWANE Fulton Award Winner Innovative Construction: 2013 Fulton Award Commendation Architectural Concrete: FREDMAN DRIVE, SANDTON, GAUTENG South African Property Owners Association Winner: Refurbishments (before and after): 2010 FAIRLANDS OFFICE DEVELOPMENT, FAIRLANDS, GAUTENG South African Property Owners Association Winner: Office Development: 2009 South African Property Owners Association Overall Winner: 2009 African Commercial Property Awards 5 Star Winner: 2009 Best Office Development in South Africa: 2009 African Commercial Property Awards Winner: Best Office Development in Africa: 2009 FUEL GROUP LOGISTICS CENTRE, ACSA PARK, GAUTENG South African Property Owners Association Winner: Industrial Development: 2009 PMR GOLD AWARD Property Developers Nationwide Second Overall: 2006 PMR DIAMOND AWARD Property Developers First Overall: Winner: 2005 PMR GOLD AWARD Property Developers Joint Second Overall: 2004 PMR GOLD AWARD Property Developers Second Overall: 2003 WORLDWEAR, FAIRLANDS, GAUTENG South African Property Owners Association Special Mention Retail Development Category 2 New Concept and Innovative Design MERCHANT PLACE, SANDTON, GAUTENG AMSA Award for Design, Construction and Aesthetics (2000) MOMENTUM LIFE, CENTURION, TSHWANE South African Property Owners Association- Winner: Corporate Office Development: 2001 South African Property Owners Association Overall Award: Winner: 2001 Association of Steel Tube and Pipe Manufacturers 2001 Steel Construction Award Excellence in the Application of Tubular Steel Design South African Institute of Steel Construction Steel Construction Award: Overall Winner: 2001 NEW CAMPUS FOR MTN PHASE 1, CONSTANTIA KLOOF, GAUTENG South African Property Owners Association Merit Award for Development Excellence: QB Award for South African Interior Design Corporate Interior over R5 Million FIRST DIRECT CALL CENTRE, RANDBURG, GAUTENG South African Institute of Steel Construction: Architectural Commendation Award UNILEVER HEAD OFFICE, DURBAN, KWAZULU NATAL South African Institute of Architects National Award of Merit 102 Rivonia Sandton m²

10 Menlyn Corporate Corner Pretoria m² CLIENTS 17

11 CONTACT JOHANNESBURG 3 Gwen Lane Sandton Central 2196 T F /2/3/4 CAPE TOWN 10th Floor 80 Strand Street Cape Town 8001 T F DURBAN Suite 4B, 100 Armstrong Avenue La Lucia Ridge, 4051 T F BLOEMFONTEIN 7th Floor North Southern Life Plaza 41 Maitland Street Bloemfontein 9300 T F PRETORIA Ground Floor, Block B, Corobay Corner 169 Corobay Avenue, Menlyn T F ACCRA, GHANA F. 304/5 5th Norla Street Labone, Accra, Ghana T +233 (0) F +233 (0) GABORONE, BOTSWANA Khumo Property Asset Management (Pty) Ltd 2nd Floor, Block A, Fairgrounds Office Park Gaborone, Botswana T F