From ultra-modern malls with luxury-brand tenants, to commercial developments in African countries where different languages are spoken… there is no such thing as a “one-size-fits-all” lease agreement. We learn more about the ins and outs of populating assets from Johan Roets, former Blue Bull fullback and now Leasing Director for Atterbury.
Tell us a bit about your background?
I was born in Bela Bela and went to primary school there. I then went to Affies High School and studied BCom at Tukkies. Property always interested me, and here we are today… I believe all things work out for a reason at the right time.
How did you come to work for Atterbury, and how long have you been part of the team?
I have been at Atterbury since October 2007. I met Louis van der Watt while I was still playing professional rugby for the Bulls. After I spent a bit of time with him on various social occasions, one thing led to another and I got an opportunity to work at Atterbury. I’ve been involved in the leasing role from the beginning under the guidance of the Asset Management Director Lucille Louw, until we recently decided it was best for the leasing department to become a separate division going forward, taking into account Atterbury’s future growth plan.
Why was that decision taken and how do the two divisions work together?
Although leasing is an integral part of the asset management function we are of the opinion that the most effective way to deal with leasing in an existing asset is for the people closest to it to take responsibility in managing any vacancies or potential vacancies, which in Atterbury’s case is each individual asset manager. The leasing department will obviously be involved where required but the main focus would rather be to deliver to the asset management team a building fully let with sustainable tenants.
What does Atterbury do differently (and better) than many other companies, when it comes to leasing?
I think reputation and good relationships are two major ingredients for success, which I believe sets Atterbury apart from many of its competitors. I believe the Atterbury team has been rather successful in delivering high-quality, sustainable assets and thereby winning the trust of the market, giving us a competitive advantage. It’s a matter of association.
What characteristics make for a successful leasing team? How many people work in this division?
I think there are many elements that contribute to creating a successful leasing team and the key to success is that all those elements need to function correctly. In a very short time we’ve built a very strong team, which positions us for future sustainable growth. We have 11 people in our leasing team who handle retail, commercial and industrial leasing in South Africa, Africa and Europe.
What are the most important steps to a successful lease agreement?
There are fundamental clauses in a lease agreement that are not negotiable and imperative to always include. Therefore, you need to do what is necessary in order to achieve that outcome even if it requires you to concede on a lesser matter in order to obtain the greater.
Do you have to adapt the lease agreements for each new development?
Retail agreements differ from those of commercial agreements and then the industrial agreements differ from the commercial ones again. Also, when we develop in other countries a different law system applies, you deal with different languages, freehold vs leasehold and many more variations.
Are there ever special circumstances to take into account?
Leasing is all about special circumstances and adapting; no two deals and no two leaseholders are the same, and we have to bear that in mind with every interaction, and every person we deal with. The differences are vast – between retail and commercial, between South Africa and the rest of Africa, and having to adapt is the key.
What are the particular leasing challenges involved with international developments?
Our African involvement has shown us again how valuable a commodity time is. How we deal with challenges in Africa is more time consuming and we have learnt to deal with those proactively. Europe on the other hand is a more sophisticated environment with existing infrastructure and expertise, which lays a better foundation for doing business.
Which project has been your absolute favourite to work on?
I’d have to say The Grove, Mall of Namibia… A truly fantastic product with a vast variety of retailers in a beautiful country.
And which one has presented the biggest challenges?
Leasing in general is a challenge as you always deal with the dynamics of people, which is never an exact science. However, I think that Newtown Junction probably stands out most as it truly was pioneering work and such a special project that it took extra time and effort to get people to share in our vision. It is a unique development located in the heart of Johannesburg and was particularly difficult to position at first. I’m proud to say that our patience and hard work are starting to pay off and we are securing top tenants at Newtown Junction. We are especially excited for Work|Shop|New|Town to open in collaboration with The Potato Shed restaurant (owners of the very successful Life Grand Café). This will be one-of-a-kind, which personifies what Newtown stands for.
As the company has expanded, so must the number of contracts your department handles. Can you share statistics, in particular with a development on the scale of The Mall of Africa?
We dealt with over 750 lease agreements in the previous financial year. Over 280 of these were dealt with by the Mall of Africa team, under the leadership of Mareli Vorster.
