Indluplace's new internal property management unit will employ over 280 people

By Edward West Time of article published Nov 18, 2021

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Indluplace set up a whole new subsidiary employing more than 280 people to more closely manage the more than 30 000 people that live in the 9 199 home units that the group rents to the affordable end of the residential market.

This emerged at the release of the Indluplace’s results yesterday, where it declared a 28,13096 cents per share dividend for the year ended September 30 2021, even though the impact of the Covid-19 pandemic on its mainly lower income tenants and the company, continued well into 2021.

Indluplace’s R3.5 billion portfolio also includes some 16 058 square metres of associated retail space. The dividend was more than 36 percent below the dividend in 2020.

The company said yesterday that it had to internalise its entire property management function through the past year due to the challenges brought on by the pandemic, and a subsidiary was set up to manage the portfolio.

Its staff includes building-based and head office staff, and their task was to ensure that tenants were given superior service, buildings were clean and well maintained and properties delivered results which would enable the company to pay sustainable dividends to investors.

“The decision to set up a subsidiary, Indluplace Property Services, in this environment, was taken in the best interest of the long-term sustainability of the company. The aim is to keep the performance of the properties stable during this difficult transition and this has been achieved,” Indluplace’s management said yesterday.

The residential letting environment also remained “extremely competitive” and, while a number of new leases to tenants were concluded, the higher tenant turnover meant average occupancy numbers were slightly down for the year.

Revenue was down 6.6 percent to R600.88 Net asset value fell 7.7 percent to 709.55 cents.

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BUSINESS REPORT ONLINE

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