Apart from that, having a sustainable building in their asset portfolio contributes towards achieving the management strategic corporate goals. Previous literature shows sustainability has become a strategic imperative for all businesses. Abundant evidence reveals corporations are now recognizing that aligning business operation with sustainable ways adds more value. Sustainability is the current trend adopted by major business corporations in Malaysia. This research adds to the scant literature on corporate real estate management in South Africa. The role of corporate real estate strategy in the firms’ corporate strategy formulation has the ability to enhance shareholder value. Real estate developers, landlords and owner occupiers would benefit from better understanding the strategic requirements of corporations to ensure that the solutions they provide increase the likelihood of maximizing shareholder return. These results suggest that the incorporation of corporate real estate strategy in the firms’ corporate strategy formulation has the potential to enhance shareholder value for South African firms. This study also ignores the dynamic external environment in which firms operate and the necessity of firms adjusting their corporate real estate strategy to their changing business strategy. Flexibility as a corporate real estate strategy also has a significant positive coefficient, which indicates a positive relationship with share price.Īlthough consistent with results of studies conducted in Europe and Asia, the results of this research may not be applicable to privately held non-listed firms, state-owned enterprises, non-profits and educational institutions. Return on Shareholder Funds has a strong significant positive correlation with share price. The Consumer Goods, Healthcare and Telecommunications sectors appear to demonstrate the highest level of alignment. The study finds that the most used strategy by firms (47%) is that which facilitates production, operation and service delivery. The methods used in this study have been applied before in European and Asian studies this assisted in ensuring that validity and reliability was achieved. The independent variables were the CRE strategies employed and the dependent variable was the share price. The quantitative portion of the study involved the use of multivariate analysis, to distinguish and quantify the relationship, if any, between corporate real estate strategy and the identified financial performance indicators. The qualitative part of the study involved the analysis of the firms’ annual reports to determine the presence and use of corporate real estate strategies and their alignment to corporate strategy and the extraction of financial indicator data. The study was both qualitative and quantitative in nature, with a specific focus on non-property firms listed on the Johannesburg Securities Exchange. Property asset managers might also act as the investor"s real estate agent when properties are being bought or sold, advise clients on a consulting basis, or be employed on retainer if an investor is bidding on a long term property development project.This paper aims to discuss whether alignment between corporate real estate strategy and corporate strategy exists for non-property companies listed on the Johannesburg Securities Exchange and what effects alignment has on the firms’ financial performance. As stated above, these decisions should always maximize the value of the owner"s portfolio. Keeping this in mind, property asset management involves a property asset manager overseeing investment properties for the owner for the life of the investments, and in some cases making decisions about acquisitions, management, and dispositions on behalf of the owner. An ?asset? can refer to anything ?of economic value? like cash, inventory, or office equipment, but in this case refers to real estate property. ?Asset management? refers to coordinating or overseeing the acquisition, management and disposition of assets in such a way as to maximize the financial value of the asset to the investor. In order to understand property asset management, it is first necessary to break down the terms.
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