2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08PART 3PROGRAMME PERFORMANCEPROPERTY MANAGEMENT &DEVELOPMENT1 STRATEGIC GOAL2 BUDGETThe programme aims to anticipate and satisfy customer needs by ensuring availability of suitable industrial andcommercial premises for investors throughout the Eastern Cape, and disposing of residential units, in a manner thatwould maximise returns from the Corporation’s property portfolio.Strategic goals of this programme are:• Provision of rental property portfolio• Development of new industrial and commercial properties• Management of investment propertyProgramme Budget (R’000’s) Actual (R’000’s) % Deviation Reason for DeviationOverhead expenditure 61 318 78,715 +28 Increase in impairmentallowance and rates expense3 OUTPUTS AND SERVICE DELIVERY TRENDS3.1 Programme 5: Property Management and Development performance for 2007/08Measurable ObjectivesTo increase rentalcollection from 60% to95% by 2009/10Increase collection onoutstanding rentalsTo convert residentialproperties to tenants ingood standingMaintain ECDCPropertiesIncrease rate ofoccupancy by 5%PerformanceMeasurePlannedPerformanceActualPerformance%DeviationReason for deviationRental received 75% 54% -21 Moratorium on evictions had anadverse affect on collections.Arrears collected 17.5% 25% +7 Above target as some tenants settledtheir debt per the settlement policyand qualified to buy their houses.Value of propertysalesObtain goodvalue for propertyNumber of unitsoccupiedOngoing andstay withinbudget ofR7,2milR60 mil R18 mil -70 Moratorium on evictions, land claimsand tenants with high rental arrears.R5,967 mil +17 Only maintain properties wheretenants are in good standing with theirrental payments.5% - - Occupancy remained unchanged.55