Rosebank Workspace Business Plan — Strategic Plan, FY2027 to FY2031

Strategic objectives across the five years and the sequencing of the three centre openings.

Section 15 of 29

Strategic Plan, FY2027 to FY2031

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Where to play: three premium Johannesburg nodes, enclosed suites, mid-sized corporate occupiers. How to win: the best sites on the best terms, an enterprise service specification at a sub-enterprise price, and occupancy defended ahead of rate.

14.1 Where to play

Table 42 Strategic choices, where the Company will and will not compete

Dimension	Where the Company plays	Where it does not
Geography	Rosebank, Sandton CBD and Waterfall City	Johannesburg CBD, Midrand industrial, Pretoria, secondary nodes, other provinces
Quality tier	Premium and upper-mid	Value and budget shared space
Product	Enclosed private suites (62% of capacity), supported by dedicated desks and flexible memberships	High-density open-plan hot-desking as a primary product
Customer	Corporate occupiers of 4 to 60 seats with a procurement process	Individual consumers and very large single-tenant floor requirements
Contract	Twelve to thirty-six months	Daily and weekly casual use beyond incidental day-office sales
Model	Conventional lease arbitrage on ten-year leases	Management agreements and franchising within the projection period
Ancillary	Meeting rooms, parking, virtual office, concession food and beverage	Owned food and beverage, childcare, gym, co-living

14.2 How to win

Secure the sites before the market tightens. Ten-year leases with installation allowances of R1,200–R1,450 per m² and four months rent-free are available now and will not be in three years. The Rosebank and Sandton leases are the two most valuable assets the Company will ever acquire.
Sell enclosure, not desks. Sixty-two percent of capacity behind a lockable door, priced at a premium, contracted for twelve months or more, with a deposit held. This is what produces a revenue base a lender will lend against and an acquirer will pay a multiple for.
Match the enterprise specification at 88% of the enterprise price. Network segregation, documented security policy, dual-carrier connectivity and full backup power are what allow a multinational procurement function to approve the Company. Providing them at a mid-market rate is the commercial position.
Defend occupancy, concede on rate. A six-point occupancy shortfall costs R4.3m of FY2031 EBITDA; a 5% rate reduction costs R2.9m. When the two conflict, the arithmetic is unambiguous.
Hold central overhead flat while centres are added. Adding Sandton and Waterfall City to the platform requires two additional head-office roles, not two additional head offices. This is what turns three viable centres into a business worth more than the sum of three centres.
Keep the third centre optional. The Waterfall City lease is signed at month 34 or not at all. A two-centre business generating R9m of EBITDA on R44m of funding is an acceptable outcome; a three-centre business built on two underperforming centres is not.

14.3 Capabilities required

Table 43 Capability requirements and how each is built

Capability	Current state	Target state	How it is built	By
Lease negotiation	Held by the managing director	Institutionalised with documented term standards	Term-sheet standards set at close; broker panel appointed	Month 6
Fit-out delivery	Concept design complete; QS appointed	Repeatable specification and contractor panel	Rosebank delivery documented as the template	Month 4
Enterprise sales	One business development manager committed	Two-person team with a broker panel and a corporate vendor onboarding capability	Second hire in FY2028; vendor onboarding from month 8	Month 18
Centre operations	Not yet established	Documented standards, consistent across three sites	Standards written during Rosebank fit-out; audited quarterly	Month 9
Revenue management	Not established	Occupancy and rate managed weekly against a capacity plan	Weekly commercial meeting from month 2; dashboard from month 4	Month 6
Covenant and treasury management	Not established	Rolling 13-week cash and quarterly covenant forecast	Finance manager from month 1; board reporting from month 3	Month 4

14.4 Management systems

Weekly commercial meeting reviewing pipeline, viewings, proposals, signed desks, notices received and the resulting occupancy forecast for the next ninety days.
Monthly centre P&L against budget with contribution, rent cover, occupancy and churn reported for each centre separately, not only in aggregate.
Monthly board pack within fifteen business days, including the covenant calculation and a rolling thirteen-week cash forecast.
Quarterly service audit of each centre against the published standards in Section 5.4, conducted by the operations director and reported to the board.
Annual re-forecast of the five-year model at each financial year end, with the base case reset to reflect achieved performance rather than the original plan.

14.5 Strategic priorities by year

Table 44 Annual strategic priorities and the measure of success

Year	Priority	Measure of success	Financial outcome
FY2027	Deliver and fill the Rosebank flagship	64% occupancy at year end; R1.4m of monthly revenue in December	Revenue R8.4m; EBITDA (R7.1m); cash R14.3m
FY2028	Prove the model repeats at Sandton; reach group EBITDA breakeven	Rosebank stabilised; Sandton at 75% by year end	Revenue R31.0m; EBITDA (R1.8m); first positive EBITDA month in month 22
FY2029	Consolidate two stabilised centres; build the multi-site account base	Blended occupancy 84%; first profitable year	Revenue R47.2m; EBITDA R7.0m; NPAT R1.8m; DSCR 1.32×
FY2030	Open Waterfall City without destabilising the group	Waterfall at 80% by year end; group cash above R10m throughout	Revenue R61.7m; EBITDA R6.4m; DSCR 1.18× — the tightest point of the plan
FY2031	Stabilise the platform and prepare for exit	Three stabilised centres; central overhead below 15% of revenue	Revenue R73.4m; EBITDA R14.2m; net cash R15.6m; DSCR 2.80×