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Johnson Controls and Kagiso join forces

A new company has emerged in the facilities management (FM) arena with the recently signed agreement between Kagiso Property Holdings and Johnson Controls, which sees the establishment of Johnson Controls Facilities Management - in association with Kagiso. A bit of a mouthful but a neat fit, according to John Reed who will take on the executive chairmanship of the new company, with Kura Chihota as managing director.

Johnson Controls holds 60% and Kagiso Property Holdings 40% of the new company, referred to as Johnson Controls FM. As from 1 October, it will function as the sole entity, between the parties, for newly procured facilities management contracts and their operation, in southern Africa.

Although the primary objective of the new company is to serve new clients, the agreement provides for existing FM contracts held individually by the parties, to be 'transferred' to the new company if and when a client requests that this occurs.

Kura Chihota, formally managing director of Kagiso's FM interests, describes the rationale for this new venture succinctly, "Together we can do what neither of us can do apart." From Kagiso's perspective, this agreement with Johnson Controls as an internationally recognised FM organisation enables the property holdings company to leapfrog the trials of organic growth and accelerate its broader participation in the FM sector.

As Chihota sees it, "We have chosen to partner the best in the world and our direct gain - in terms of learning from and operating with Johnson's global FM systems - will translate in the bigger picture into skills development and economic growth for South Africa."

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