PROPERTY investment holding company Dawn Properties Ltd forecasts improved performance in the financial year to end March 31, 2014, helped by new projects, restructuring of its leases and consultancy business despite missing targets in the first four months of the financial year, a company official said.
In a trading update for the four months to July 31, 2013, Dawn Ltd CEO Justin Dowa said he hoped to improve the business in the short-term.
He said negotiations with tenants were currently underway and expected to be concluded shortly with a view to ensure leases are redrawn to capture global best practices with regards to the commercial relationships with tenants.
“Existing lease contracts incorporate some troublesome clauses which are causing gridlock in the management of the landlord-tenant relationship, creating conditions where the assets will not only continue to underperform, but will gradually fall into a state of very serious disrepair,” he said after the company’s annual general meeting this week.
Dowa said the company was also restructuring its consultancy business, centered on automation and the improvements to the business processes and quality management systems.
“Automation will improve efficiency and reduce the likelihood of errors while enhancing the quality of the reporting clients.
Realignment of the human capital to adequately resource core business lines while creating opportunities to add new business lines is also being considered and the overall thrust is to reduce costs and improve profitability,” he said.