MOWANA PROPERTIES
MOWANA PROPERTIES Deep Roots Provide Great Growth
for Mowana Properties PRODUCTION: James Davey
Embracing change, driving transformation, and aiming to deliver world-class standards, Mowana Properties is eyeing the industry’s top spots as it prepares for extended growth. Managing Director Samuel Ramuhashi talks to Enterprise Africa about the potential for this exciting and innovative business.
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In the listed property sector, and the busy property management industry in South Africa, there has been a shift in recent years as technology advances have changed expectations for clients, and transformation and revolution have created new structures in the industry’s leaders. Market dynamics have also moved – no longer is the focus just about office, residential, commercial, and industrial. Mixed-use, blended facilities, semi-parastatal-type operations are important, and the list of core services that a property management company delivers is ever-evolving. With a long list of competent, professional, effective players, South Africa’s industry is well-served, but there remains room for a local business - transformed in its composition, focussed solely on quality to step up and lead. Since 2015, Sandton-based Mowana Properties has been driving a culture of excellence as it grows its reputation with existing clients. This reputation is now encouraging enquiries from elsewhere in the market as potential clients hunt for experienced black-owned, black-
managed, and black-operated partners with the ability to scale. Managing Director Samuel Ramuhashi tells Enterprise Africa that Mowana Properties is opening new doors of opportunity after proving itself managing two large portfolios with significant value. “Since its establishment seven years ago, Mowana Properties has successfully managed properties in the value of R42 billion and has seen sustained growth in the business. Through its service and rapid growth, Mowana Properties has exposed itself to other vast possible opportunities,” he says. “The facilities management services market remains fragmented with a lot of small players and a dominant few. With Mowana Properties’ already existing portfolio under management, its track record and historical financial performance, it will be able to raise third-party financing for consolidation of the facilities management sector and carry out mergers and acquisitions or share-for-share mergers and acquisitions transactions without major dilution.” Currently, the company manages
the portfolio owned by Pareto Limited, an unlisted Property Loan Stock (PLS) company and the portfolio directly owned by the Government Employees Pension Fund (GEPF), Unemployment Insurance Fund (UIF) and Compensation Fund (CF) through the Public Investment Corporation (PIC). In total, the company manages over 2.1 million m2 of GLA (Gross Lettable Area). The Pareto portfolio consists of premium shopping centre assets including Cresta Shopping Centre, Menlyn Park Shopping Centre, The Pavilion Shopping Centre and Tyger Valley Shopping Centre. The GEPF, UIF and CF property portfolio consists of retail shopping centres (Urban and Township), offices and specialised buildings, residential and industrial properties in major metropolis and towns in the country. Mowana’s services for these properties under management spans across facilities management, property management, development leasing, development marketing, leasing management, retail management, project management and more.
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INDUSTRY FOCUS: PROPERTY
GLOBAL STANDARDS Ramuhashi is keen for Mowana Properties to grow its list of services and expand into new sectors – not as competitors to existing operators, but as a thought leader that provides existing and new clients with turnkey solutions. Already, the property brokerage and project management divisions are established. Alternative media solutions will assist in the company’s marketing service offering; and complementary services in parking infrastructure, specialised building cleaning, hygiene and waste management, integrated security solutions, landscaping services and integrated solar services are all value-add services that the company is exploring. “Our project management offering is benchmarked to global standards, guaranteeing that clients obtain world-class service and expertise,” he says. “With client service and value creation in mind, the aim is to offer incomparable project management solutions extending from initial
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concept development through to completion and ultimate handover. Mowana Properties has an outstanding track record for delivering projects on time, economically and without compromising on quality.” Crucially, growing the portfolio, and expanding the company’s outreach comes as a result of internal investment. For Mowana Properties, internal investment is at the very core of its ideology. The company’s mission is ‘to provide superior and efficient property and facilities management services and innovative solutions to our clients’, and its culture is ‘one of enabling each employee to reach their full potential and in return demanding consistent performance against that standard’. Ramuhashi is clear that transformation sits staunchly within this culture. Expanding the business means expanding the industry for young black professionals, creating a local industry bursting with talent, feeding into the achievement of the mission. “While there is a commercial
interest for Mowana Properties to grow and manage sustainable businesses within the retail and property sector, there is also a commitment to ensuring that we develop requisite competencies within the sector, especially amongst black South Africans, who for years played a marginal role, not by choice, but by a system designed to keep them on the periphery,” he says. “The property sector is in desperate need to develop a talent pipeline to accelerate transformation at management and senior management level. Investing in skills development for young professionals is also flagged by property practitioners as key to retaining talent within the sector.” Currently, Mowana Properties is an active member of the internationally acclaimed Institute of Real Estate Management (IREM) – among other memberships – and looks to upskill employees through this global alliance of experts. “It’s a legacy for young black professionals in the property sector. We recognise its value, not just for us
MOWANA PROPERTIES
as a company but for the industry,” says Ramuhashi. “These are the changes that will shape the sector, the start may be slow, but the impact is going to be huge.” Africa’s property management industry is packed with international players, owned by European or North American conglomerates. While there are successful African organisations operating across the continent, there is recognition that localisation of skills and development of knowledge in South African businesses is necessary. “The South African property sector predominantly remains untransformed and largely white owned,” states Ramuhashi. “Consequently propertyrelated service providers also remain untransformed. This results in a dominance of a few large players while the smaller (mostly black) players remain unsuccessful due to blue-chip companies continuously securing property management and propertyrelated services from untransformed suppliers instead of supporting blackcontrolled companies.”
TRANSFORMED? Despite significant progress since the establishment of a democratic government in 1994, South African society - including the property sector remains characterised by racially based income and social services inequalities. “This is not only unjust, but inhibits South Africa’s ability to achieve its full economic potential,” Ramuhashi adds, highlighting the importance of robust BBBEE credentials. “The BEE legislative environment provides an advantage to compliant companies as most government department use the BEE scorecard as their guideline in procuring services. These services include property rentals. Through our BEE status and track record, Mowana Properties has been able to tender for contracts requiring holistic facilities and property management services to increase its revenue and profitability.” The Property Sector Charter Council (PSCC) released a report recently which highlights the issues, and why
transformation is not only important, but essential in the industry. 77% of estate agents are white, while 23% are black (African, Coloured, and Indian). In terms of gender balance, there were more female agents registered at the Estate Agencies Affairs Board (EAAB) in 2018, at 58%. Ownership balance is targeted at 30% but sits at 15%. Skills development goals sit at just 5% against a 19% target. “Ultimately, progress has not been deep or fast enough, as the report suggests,” states Ramuhashi. “There are, however, signs of a belief in the need to transform, even if the sector has not yet adequately put this awareness into action.” The goals of the PSCC include achievement of change in racial and gender composition of property ownership, control, and management, and to enhance the participation of black people and women in the South African property sector, overcoming obstacles to property ownership and participation in the property market for black people,
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INDUSTRY FOCUS: PROPERTY
improvement in access to finance for property ownership and development, and to promote employment equity in the sector. “In this context” says Ramuhashi, “there has been transformation in board composition, while transformation through share ownership has been slow. The report notes that large institutional investors often hold a large portion of shares in real estate investment trusts (REITs) and may be unwilling to relinquish substantial portions of these shares.” Mowana Properties is a Level 1 BBBEE contributor and boasts exceptional female leadership. “Mowana Properties has a skilled and experienced management team with individuals who have an average of 25 years’ specialised properties and finance expertise. Our Financial Director, Ms Kholiwe Fana is an experienced Chartered Accountant, with key property management and asset management skills. “The company boasts a wide array of skills amongst young professionals and women across different functionalities of the company.
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Some of the more complex retail shopping centres in the country are managed by women. Five of the seven regional and super-regional shopping centres on the Pareto portfolio have been entrusted to women and they are responsible for the bulk of the profitability of the company, while more that 90% of the neighbourhood centres of the GEPF portfolio are also managed by women. The executive management of Mowana Properties also has a strong representation of women in key strategic positions including the portfolio executive on the Pareto portfolio, Ms Olive Ndebele and the portfolio executive on the GEPF, UIF and CF portfolios, Ms Mercy Maina,” details Ramuhashi. Young, black, female professionals also oversee collection, leasing, and property management functions within Mowana Properties. PROP TECH The onset of ‘everything digital in every operation’ as part of the fourth industrial revolution has not skipped the property sector. In fact, this is an
industry which has arguably made the best use of digital solutions to advance and bolster its service portfolio. From AI used in security systems, collaborative innovation used in financing, and cloud hosting of job sheets and project documents, through to speedy communication and investment tools, property and technology go handin-hand. But Ramuhashi is keen for technology to be an enabler and not a replacer of human capability. “At Mowana Properties we are introducing new technologies and connecting desperate systems to enhance the productivity and derived value of buildings, processes and people,” he says. “By merging traditional bricks and mortar with smart devices and the IoT, we are able to obtain access to real-time data to ensure our people and property portfolios operates efficiently through live-time decision making capability. “Our technology strategy aims to be embedded into our business operating model, but there are three key areas,” he adds. “First is operational efficiencies, especially automation beyond just cost savings, to technology that enables people and processes through agile and resilient infrastructure. “Second is insights through data and analytics. We strive to be a datadriven company, and the amount of data out there has been growing at an astounding rate giving us the visibility to key information for decisions and managing performance. “Finally, integrating property management and building technologies areas i.e. how we interact with prospective and current tenants, and how we manage the buildings themselves. We aim to bring together the business and technology changes needed to make meaningful, sustainable growth and tangible value to all our stakeholders. The ultimate vision is to create a digital ecosystem where meaningful and valuable data is the lifeblood that flows between and within all we do.”
MOWANA PROPERTIES
RECENT SUCCESSES The COVID-19 pandemic and the lockdown measures that were put in place to help curb its spread, forced a rethink around all assumptions about how we see retail spaces and catering for audiences that are keen on ‘experiences’ rather than going to the malls to just buy things. Apparel retail stores as an example, have come in large numbers both from local and around the world and can be found in all shopping centres around South Africa. This is what defined traditional mall structures. However, the influence of ‘Kasi lifestyle’ can never be minimised when talking about the country’s ever expanding fashion industry. The emergence of brands like Legends, Drip, Bathu, Era, and Spelete are some that have exploded onto the scene and are redefining the traditional fashion lifestyle. “Through the shopping centres we manage, we recognised the impact of the pandemic on small businesses and utilised the lifestyle markets concept to support small businesses to showcase their designs by utilising existing spaces in the most innovative way,” says Ramuhashi. The lifestyle markets implemented at the Pareto shopping centres supported small businesses by affording them the opportunity to showcase their products and to grow, gain exposure and generate income. The Pavilion Shopping Centre implemented the Social Gallery, an art and fashion gallery. The Gallery allowed for designers and artists to sell from the space and the PR campaign shone a light on each of the entrepreneurs. Between October and December in 2021, the entrepreneurs featured at the Gallery generated circa. R920,000 in revenue. In 2021, the lifestyle markets supported over 1392 entrepreneurs. Menlyn Park Shopping Centre supported 62 vendors at its Summer Festival. Mimosa Mall provided exhibition space to 50 entrepreneurs at
Samuel Ramuhashi - Managing Director its Entrepreneurs Market. Tyger Valley Shopping Centre, through its various markets held throughout the year, supported 1280 entrepreneurs. Such initiatives make Mowana Properties an award-winning company, having amassed several industry awards in recognition of our exceptional shopping centre marketing, innovation, and creative achievements as well as excellent customer service. “Across all our different shopping centres, Mowana Properties is recognised with various awards, ranging from Footprint Marketing Awards to the Spectrum Awards,” smiles Ramuhashi. November 2021 also saw the award of a Bronze South African Council of Shopping Centres (SACSC) PR award for the Vangate Mall following its successful project promoting the launch of the Barakat Movie premiere in April 2021. Again, a community-focussed project, this concept was a driver of activity in Athlone. “With the management of 180 retail, commercial, industrial, vacant land and residential properties, across all provinces except Northern Cape
and Mpumalanga provinces, Mowana Properties is the most trusted property management company in South Africa. Our overall knowledge of the property market, as well as an appreciation of regional property market dynamics put Mowana Properties in an excellent position to provide expert and professional advice to investors and property owners,” concludes Ramuhashi. Mowana – the Setswana word for the Baobab tree – is growing but is already wise and strong. A transformed business, dedicated to service excellence, and proven in its ability to deliver for clients, Mowana Properties is perhaps the next star to shine in South Africa’s busy property industry. Driving change, this is the company to watch as it begins its next growth chapter atop some of the strongest foundations in the sector.
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April 2022
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APR IL 2022