Corporate update for Q3 2022
John Jack, CEO of Galetti Corporate Real Estate
Like most companies, we are carefully following the Ukraine war and its effect on rocketing global inflation, global citizens, and the local economy. In South Africa, the markets have normalized significantly since the 2020/21 upheaval but work/life balance and attitude towards accepted norms have changed drastically.
This has changed how workspace is perceived and our clients have moved quickly to adapt and go beyond just offering a space with ‘four walls’. Offices as a service, rather than offices as an offering, have become increasingly popular. Today it’s about differentiating your space to offer something unique and exciting to attract and retain tenants.
Business and performance outlook
Galetti delivered decent results for the 2022 financial year with the advisory side of the business coming through for the team. The company has embarked on an aggressive growth path which had been largely shelved during the COVID-19 pandemic. Galetti’s retained IP will now be put to work with an expansion over several service lines – adding to the already successful advisory and leasing divisions.
Last year, we announced that we were entering the auction market to deliver fast and focused disposals for our clients. With a solid track record in private treaty, opting for a sealed bid process was a natural progression to cover all methods of sale. The Auction division employs a focused, high-performance sales culture utilizing our technology to target buyers accurately.
This week, we announced that we are moving from an online-only auction environment to a live event. This follows the acquisition of two key dealmakers: Guy Dowding and Ricardo Silva, at the helm joining us as the Joint Managing Directors in this division. Both Guy and Ricardo have significant experience and an impressive track record, having achieved various top sales titles in the industry during the past five years.
In November we will announce the first of a series of planned acquisitions. These acquisitions will see the leasing and advisory business increasing headcount by just over 30% and tracking revenue sharply upward, which will benefit our operating leverage significantly with a continued focus on strict financial controls.
In closing
They say good decisions are made in the bad times and bad decisions are made in the the good times. Right now, it feels like we are in the eye of the storm if you read the news!
We look forward to engaging with our clients and friends on the 30th of November at our debut live auction event. We are bringing just over half a billion Rand’s worth of stock to the floor encompassing all the asset classes across the country. We see it as a day, not only to trade property but also to reconnect with our clients and for everybody to meet and create future business and relationships for themselves.
See you there,
