An Investigation into the Strategic Importance of GBFIs within the Listed Property Market Saul...
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An Investigation into the Strategic Importance of GBFIs within the Listed Property Market Saul Nurick Alexandra Morris Jody Schofield Department of Construction
An Investigation into the Strategic Importance of GBFIs within
the Listed Property Market Saul Nurick Alexandra Morris Jody
Schofield Department of Construction Economics and Management
University of Cape Town
Slide 2
Background to the Research REITsGBFIs Strategic Decisions
Companies Property Sectors Relatively new financial structure in
SA. First REIT est. in 2013. Green building in its infancy in SA.
GBCSA est. in 2007.
Slide 3
Green Building Features and Initiatives Feature (reduces
resource consumption) Initiative Increases resource consumption +
environmental impact
Slide 4
Research Question What are the key decision-making patterns and
how do they influence the implementation of GBFIs in the South
African listed property market?
Slide 5
Research Proposition GBFIs form part of strategic decisions
across the different property companies and across the different
property sectors within the listed property market.
Slide 6
Research Method
Slide 7
Pattern-Matching Adapted from Trochim (1989) Theories Ideas
Theoretical Pattern Observations Data Observed Pattern
Pattern-Matching Literature Empirical Findings
Slide 8
Patterns Drawn Proactive versus Reactive Decision Strategies
Property Sectors Triple Bottom Line (TBL)
Slide 9
Findings Case Study 1 (CS1) Case Study 2 (CS2) Case Study 3
(CS3) Cross-Case Analysis
Slide 10
Respondents Case Study 1 (CS1) Non-Executive Director (R1-1)
Financial Manager (R1-2) Case Study 2 (CS2) Development Manager
(R2-1) Regional Development Manager (R2-2) Regional Operations
Manager (R2-3) CEO of Subsidiary Company (R2-4) Case Study 3 (CS3)
Development Manager (R3-1) Facilities Manager (R3-2) Operations
Manager (R3-3)
Slide 11
Case Study 1 March Listed on the JSE in March 2006. In the
process of becoming a REIT.
Slide 12
Case Study 2 February 2000. Listed on the JSE in February 2000.
Obtained REIT status in September 2013.
Slide 13
Case Study 3 October 1987. Listed on the JSE in October 1987.
Obtained REIT status in July 2013. Included in JSEs Social
Responsibility Index in December 2009.
Slide 14
Cross-Case Analysis Proactive vs. ReactiveDecision
StrategyProperty SectorsTBLChallenges CS1 Primarily Reactive. CS1
strategy is to reduce current costs, and by doing so remain
competitive to retain tenants. Not much differentiation between the
influence of GBFIs on strategies across property sectors. The
primary strategy in terms of TBL principles is an economic
strategy. Infancy of the green building movement results in
challenges regarding the implementation of GBFIs. CS2 Fairly
proactive, however, some drivers indicate a reactive approach.
Initially, C2 was driven to reduce costs, however, the strategy is
considered over the long term through in- depth analyses in order
to ensure benefit to tenants and financial feasibility. Not much
differentiation between the influence of GBFIs on strategies across
property sectors. The primary strategy in terms of TBL principles
is an economic strategy. Infancy of the green building movement
results in challenges regarding the implementation of GBFIs. CS3
Primarily Proactive.The primary strategy to implement GBFIs is to
gain a competitive advantage in the South African listed property
market, and to remain competitive internationally. Development of
strategies over the different property sectors in GBFI
implementation. CS3 considers all three TBL aspects in their
decision-making. No challenges faced with regards to the
implementation of GBFIs, but rather in the management of
GBFIs.
Slide 15
Cross-Case Analysis Proactive vs. ReactiveDecision
StrategyProperty SectorsTBLChallenges CS1 Primarily Reactive. CS1
strategy is to reduce current costs, and by doing so remain
competitive to retain tenants. Not much differentiation between the
influence of GBFIs on strategies across property sectors. The
primary strategy in terms of TBL principles is an economic
strategy. Infancy of the green building movement results in
challenges regarding the implementation of GBFIs. CS2 Fairly
proactive, however, some drivers indicate a reactive approach.
Initially, C2 was driven to reduce costs, however, the strategy is
considered over the long term through in- depth analyses in order
to ensure benefit to tenants and financial feasibility. Not much
differentiation between the influence of GBFIs on strategies across
property sectors. The primary strategy in terms of TBL principles
is an economic strategy. Infancy of the green building movement
results in challenges regarding the implementation of GBFIs. CS3
Primarily Proactive.The primary strategy to implement GBFIs is to
gain a competitive advantage in the South African listed property
market, and to remain competitive internationally. Development of
strategies over the different property sectors in GBFI
implementation. CS3 considers all three TBL aspects in their
decision-making. No challenges faced with regards to the
implementation of GBFIs, but rather in the management of GBFIs. Due
to infancy of green building movement in SA.
Slide 16
Conclusions CS3 CS1CS2 PROACTIVEREACTIVE
Slide 17
Conclusions Refutation of the Research Proposition GBFIs form
part of strategic decisions across the different property
companies, but not across the different property sectors within the
listed property market.