Telkom targets property sell-off

[rpm]

Telkom targets property sell-off

Telkom wants to cut its massive R2 billion annual property related operating costs by selling off some of its assets.

 

[MickZA]

Telkom would look at creating a structured transformational sourcing programme, potentially including some elements of:

Call centres;
Statement printing;
IT development and maintenance;
Supply chain distribution centres;
Retail stores;
Infrastructure and network maintenance

Call Centres - long overdue, probably get much better service from the sub-continent

 

[MickeyD]

Call Centres - long overdue, probably get much better service from the sub-continent

You are misunderstanding... they want to sell the properties where the call centres are accommodated and lease it back.

This is all good in the short term but Telkom will suffer when the escalation clauses kick in.

By then the CEO and the chiefs are long gone as their contracts expire!!!

How the wheel turns!

 

[MickZA]

You are misunderstanding... they want to sell the properties where the call centres are accommodated and lease it back.

... damn, ruined my day - should have known it was too good be true

 

[House]

Lol

 

[R13...]

You are misunderstanding... they want to sell the properties where the call centres are accommodated and lease it back.

This is all good in the short term but Telkom will suffer when the escalation clauses kick in.

By then the CEO and the chiefs are long gone as their contracts expire!!!

How the wheel turns!

But still R2bn in building expenses is still too high - they're clearly doing something else wrong with the management and costs of their buildings. I realise the R2bn is for all their buildings and they won't sell off all only those they consider non-core.

 

[MickeyD]

But still R2bn in building expenses is still too high - they're clearly doing something else wrong with the management and costs of their buildings. I realise the R2bn is for all their buildings and they won't sell off all only those they consider non-core.

/reserves right to reply in September

 

[Paul Hjul]

You are misunderstanding... they want to sell the properties where the call centres are accommodated and lease it back.
This is all good in the short term but Telkom will suffer when the escalation clauses kick in.
By then the CEO and the chiefs are long gone as their contracts expire!!!
How the wheel turns!

What Telkom needs to do on this front is get some real transparency on asset and nature in their financials. If they can wrap up huge amounts of property and sell it on the market with appropriate contracts in place it becomes a way to bring in investment into the company for core activities without needing people with faith in the company itself. There is also a lot of advantages to be had in Telkom selling certain of their properties to an ICT focused new property manager and to find some campuses where ISPs (broad sense not the narrow DSL providing company sense) rent out space

However unfortunately this smells far to much like Telkom execs trying to make the numbers look a certain way to get certain targets met and damn long term strategy of the company.