This article is from the Australian Property Journal archive
RUN Corp is looking to change its poor performance on the Australian Stock Exchange with the appointment of a new chief executive and business model.
Yesterday, RUN Corp chairman Frank Cicutto said Paul Villanti had stepped down as chief executive and that Nathan Cher had been appointed to that role.
Cher is one of the original two co-founders of RUN and its second largest shareholder with over 10 million shares.
He is also a director Dimension Data Australia and has substantial property holdings in Melbourne and Sydney.
"I make no bones about the fact that having a significant shareholding in RUN, I want to see it steered towards a profitable future," Cher said.
"I am the first to admit that we have encountered some teething problems with service delivery and rent roll integration in the last three months.
"In the last two months, we have gained valuable operational experience and insights. We have listened and we have learnt. Now it’s time to raise the bar on delivery," he added.
Cher said that the decentralisation of RUN’s client service delivery operations was progressing as planned.
"Re-locating our property managers and leasing consultants closer to their owner and property base will enable them to deliver even more personalised, efficient service with a strong local touch.
"At the same time, we retain all the cost benefits of scale and centralised shared services including trust accounting, electronic property record imaging and administration,” he added.
Cher also confirmed the decision taken by the Board last month to slow down the acquisition of further rent rolls unless they were highly value accretive.
The company was, however, continuing to progress planned acquisitions of 2,000 properties over the next six months.
Cher said that he will be reviewing the company’s financial position in detail and will report forecasts for the financial year ended 2006 and preliminary 2007 on completion of that review.
He added that from ongoing discussions with RUN’s bankers he was more than confident that they were supportive of the company.
Cicutto said that the board would institute a search for a long term successor to Cher over the coming months.
He said the board would like to thank Villanti for his contribution in helping to build the company from inception in 2004 to its public listing last December.
"In that time, RUN has acquired over 23,000 properties in Victoria, New South Wales and Queensland, making it by far the largest property management business in Australia,” he added.
Cicutto also announced that John McGrath the non executive director will take a more hands on role within the company in relation to organic growth and integration of the New South Wales business.
Shares in RUN Corp closed 4.76% or 0.01 cent higher at 0.22 cents yesterday.
In March this year, RUN Corp shares were trading as high as 0.845 cents.
By Nelson Yap
