Rosebank Workspace Business Plan — Products and Services

Hot desks, dedicated desks, private offices and meeting space, and the specification behind each product.

Section 6 of 29

Products and Services

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Seven revenue lines, of which three carry the capacity and four carry the margin. Sixty percent of FY2031 revenue comes from enclosed private suites sold on twelve-month contracts.

5.1 Product portfolio

Table 14 Product specification, pricing and economics

Product	Description	FY2027 price	Contract	Gross margin at stabilisation
Private office suite	Lockable enclosed office for 2 to 60 people, fitted, furnished, serviced and independently access-controlled	R7,100 per desk / month	12–36 months	~38%
Dedicated desk	Reserved desk in a shared studio with storage and a fixed location	R4,750 per desk / month	6–12 months	~33%
Flexible membership	Unreserved access to shared workspace during business hours; sold at 1.6× physical capacity	R2,650 per member / month	Monthly	~46%
Virtual office	Registered and business address, mail handling, call answering, lounge access and meeting-room credits	R990 per member / month	12 months	~86%
Meeting rooms and event space	Bookable rooms from 4 to 60 seats, charged hourly with member credits	R300 per occupied desk / month equivalent	On consumption	~72%
Parking	Secure basement bays at 0.35 bays per desk	R1,050 per bay / month	Monthly	~55%
Ancillary services	Print and reprographics, additional storage, IT support, food and beverage commission	R175 per occupied desk / month	On consumption	~61%

Source: Company. Gross margin is stated after directly attributable centre costs allocated on floor area and usage, and is indicative rather than a separately maintained ledger.

5.2 Capacity allocation and the oversell decision

Each centre’s desk capacity is allocated 62% to private suites, 20% to dedicated desks and 18% to flexible memberships. The flexible allocation is sold at 1.6 times physical capacity on the assumption that members attend on average 2.4 days per five-day week. This is a conservative ratio: operators in mature markets run 2.0 to 2.5 times on equivalent product. The Company has chosen 1.6 because a crowded lounge damages the premium positioning that supports the suite rate, and the suite rate is where the margin is.

Table 15 Capacity allocation at build-out

Product	Share of desks	Rosebank	Sandton	Waterfall	Total capacity
Private office suites	62%	179 desks	151 desks	138 desks	468 desks
Dedicated desks	20%	58 desks	49 desks	44 desks	151 desks
Flexible memberships (physical)	18%	52 desks	44 desks	40 desks	136 desks
Flexible memberships (sold at 1.6×)	–	83 members	70 members	64 members	217 members
Total desk capacity	100%	289	244	222	755
Parking bays	–	101	85	78	264
Virtual office members at maturity	–	170	130	110	410

5.3 Product contribution to revenue growth

Figure 1. Revenue bridge, FY2027 to FY2031

Two thirds of the R65.0 million of revenue growth between FY2027 and FY2031 comes from filling capacity the Company has already committed to lease, rather than from acquiring new sites. Only R12.9 million of the growth is attributable to the Waterfall City opening. This is the single most important structural feature of the plan: the base business improves substantially even if the third site never proceeds.

5.4 Service standards

Table 16 Operating service standards and the commercial reason for each

Standard	Commitment	Why it is set at this level
Uptime on power	99.9% — full building generator plus centre-level UPS on all workstations and network	Professional services members bill by the hour; an outage is a direct revenue loss to them and a churn event for the Company
Connectivity	Dual-carrier fibre, automatic failover, 1 Gbps symmetrical, segregated member VLANs	Enterprise IT departments will not approve a site that cannot demonstrate network segregation
Access	24/7 biometric and card access, independent suite locking, visitor pre-registration	Required by multinational security policies; also supports after-hours utilisation without staffing cost
Response to member request	Acknowledged within 2 business hours, resolved or scheduled within 1 business day	Service responsiveness is the most cited driver of renewal in operator churn studies
Meeting-room availability	≥95% of requested bookings met within the requested hour	Booking failure is an early churn indicator and the cheapest problem to fix
Cleaning and presentation	Daily full service, hourly common-area attendance during business hours	Physical standards carry the premium positioning that justifies the rate