FPI acquires new business premises

While most organisations opt to rent office space, the Financial Planning Institute (FPI) has decided to purchase a building from which it will operate and is due to occupy its new premises at end of October 2013.

Prem Govender, CFP® professional and Board Chairperson of the FPI, says, "The decision to purchase was made after various considerations and the board decided that buying instead of leasing was the most practical approach. Over the years the FPI board has managed its finances in a frugal fashion, thus being able to purchase a new property without denting its coffers. It’s important to take a long-term view in regards to owning property, we needed to ensure that we acquire space that would enable growth and accommodate the increasing staff numbers.”

"The decision to buy falls into the bigger realm of financial planning, which requires one to have a plan and do some ground work before making the final decision.”

The FPI has been at its current location in the West Rand for the past 16 years following a move from the Johannesburg CBD in 1997. The 1, 444 square meter office space is divided across two buildings, and thus limits plans to expand.

Prior to making the decision to purchase, the FPI considered the three options of investing in a new building, purchasing off plan or purchasing an existing building.

"After intensive research, we opted to buy an existing building as we realised that the other two options would be too expensive. Many hours were spent looking for a suitable building that would cater for future expansion and we are delighted that we have found exactly what we were looking for,” adds Govender.

The FPI ultimately needed to choose the best financial model and buying instead of continuing to rent was the most feasible, given the projected increase in rental costs.
Godfrey Nti, CEO of the FPI, says, "We are proud that our strong and prudent financial stewardship of FPI over the years has resulted in the Institute being able to make this significant investment decision, albeit through its wholly owned subsidiary, FPI Centre for Professional Development. This move will go a long way towards securing FPI’s long term financial sustainability, which incidentally is one of our strategic objectives,”

"For FPI members, the expected long term cost savings resulting from this investment  will go a long way towards helping keep FPI fees as low as possible. To the public the Institute serves, the decision to invest in this way reflects our long term commitment to making professional financial planning for all South Africans a reality.”

The newly acquired building is located in an up-market business node and will make provision for additional parking and boardroom space. Ownership of the building not only allows the FPI to conduct upgrades at any given moment; the Institute can also name the building as part of the larger brand and legacy building strategy.