SPLIT­TING AT THE SEAMS

Finweek English Edition - - Business strategy - BRUCE WHIT­FIELD

IG­NOR­ING THE NINETIES omen that a change in head of­fice can spell cor­po­rate dis­as­ter, FNB Home­loans and Wes­Bank will move into a new R800m RMB Prop­er­ties owned de­vel­op­ment north of Jo­han­nes­burg in mid-2008.

The triple storey of­fice com­plex will oc­cupy ap­prox­i­mately 74 000sq m. Build­ing be­gan in Oc­to­ber 2005.

FNB head of per­sonal bank­ing Peet van der Walt says the de­ci­sion to move the busi­ness units comes as the re­tail bank’s head of­fice – Bank City, in down­town Jo­han­nes­burg – is no longer able to cope with the num­ber of em­ploy­ees than the FirstRand sub­sidiaries em­ploy. Van der Walt says other FNB busi­nesses would oc­cupy the Wes­Bank space.

RMB Prop­er­ties is de­vel­op­ing the site in Fair­land on land owned by the Jo­han­nes­burg City Coun­cil through the Jo­han­nes­burg Prop­erty Com­pany. It has bought the land on a lease pre­mium – which ef­fec­tively means that the land and the struc­ture on it will re­vert to the coun­cil in 50 years’ time.

FNB Home­loans and Wes­Bank (along with RMB Prop­er­ties) are owned by the FirstRand Group and cur­rently oc­cupy about 10 dif­fer­ent premises through­out Gaut­eng. It means that rental in­come that cur­rently leaves the group will re­main within the hold­ing com­pany in fu­ture.

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