SSKB Strata Managers - Comprehensive Analysis Report

Summary

SSKB Strata Managers is a leading strata and community management company that has operated across Australia's eastern seaboard since 1995. Its mission is to be the best community management company by "making a positive difference in the lives of lot owners." The company excels in guiding body corporate and owners' corporations, emphasizing professional, personalized, and efficient services. SSKB is recognized for its strong company culture, client-focused approach, and leveraging technology to enhance strata management. In August 2024, it was acquired by Bright & Duggan Property Group, a subsidiary of Johns Lyng Group, which significantly expanded its market reach and solidified its position as a major player in the Australian strata management industry.

1. Strategic Focus & Objectives

Core Objectives

SSKB Strata Managers' core objectives are centered on delivering exceptional strata management services and fostering harmonious community living. These include:

Professional Management: To provide professional, personalized, and efficient strata management services for body corporate and owners' corporations.

Client Assurance: To ensure client assurance across key areas through its "StrataSure" principles, covering client experience, loyalty, education, compliance, systems, quality, continuous improvement, integrity, and ethical conduct.

Asset Value Maximization: To guide communities in making decisions that foster harmony and maximize the value of their collective assets.

Developer Support: To offer expert consulting services for strata-titled schemes and developers throughout the project lifecycle.

Comprehensive Support: To provide extensive support through dedicated teams specializing in customer service, finance, building services management, and bulk utilities supply.

Specialization Areas

SSKB specializes in comprehensive strata and community management, leveraging experienced and qualified professionals, technology, and adherence to its "StrataSure" principles. Key areas of expertise include:

Body Corporate & Owners' Corporation Management: Full-service management for residential and commercial strata schemes.

Developer Consulting: Guidance for strata development projects from initial scoping to scheme registration, including core titling structures, site management, and utility model investigations.

Technology-Driven Solutions: Development and deployment of proprietary digital platforms like the SSKB App and MySSKB portal to simplify strata living and management.

Client-Centric Service: A strong focus on customer service, aiming for "one-call-resolution" and building long-lasting client relationships.

Target Markets

SSKB primarily targets residential and commercial strata schemes across diverse property types within Australia's eastern states. Its main operational regions include:

Queensland (QLD)

New South Wales (NSW)

Victoria (VIC)

The company maintains offices in major hubs such as Brisbane, Gold Coast, Sunshine Coast, Tweed Heads, and Melbourne, allowing it to directly serve these key market segments.

2. Financial Overview

Funding History

SSKB Strata Managers' financial overview is highlighted by its recent acquisition.

Total Funds Raised to Date: Prior to its acquisition, public details on total funding raised by SSKB were not available.

Acquisition by Johns Lyng Group (August 2024):

Acquirer: Bright & Duggan Property Group, a subsidiary of Johns Lyng Group (JLG Ltd).

Combined Value: The acquisition of SSKB Strata Managers, along with Chill-Rite HVAC (another acquisition by Johns Lyng Group), totaled $57.6 million.

Funding Breakdown: Johns Lyng Group made cash payments of $28.8 million, with the remaining portion paid in JLG Ltd shares.

Earn-out Clause: An additional aggregate earn-out of up to $15.4 million is contingent on FY25 and FY26 earnings of the acquired entities.

Impact on Growth: This strategic acquisition is expected to generate over $45 million in FY25 revenue for the combined acquisitions, with an estimated EBITDA of approximately $9 million. This significantly strengthens SSKB's market position, expands its operational reach within Australia's strata management sector, and positions its parent company as Australia's second-largest strata manager.

3. Product Pipeline

Key Products/Services

SSKB's product and service pipeline is focused on enhancing strata management through digital innovation and comprehensive support.

SSKB App & MySSKB Portal

Description: Proprietary mobile application and web-based platform providing a digital hub for lot owners and committee members.

Development Stage: Actively developed and continuously enhanced with new features.

Target Market/Condition: Lot owners and committee members of residential and commercial strata schemes.

Expected Timeline: Ongoing development and feature releases.

Key Features & Benefits:

Easy access to personal owner information, financial statements, insurance details, meeting minutes and agendas, and reports (e.g., Sinking Fund Forecast).

Online levy management and payments (via DEFT).

Direct contact with the SSKB team and improved communication within committees.

Enhanced meeting and voting notifications.

Access to necessary forms, applications, and facility booking features.

Dedicated "committee-first" hub for committee members with revamped chat functionality and a notice board.

Click2Vote Platform

Description: An integrated feature within the SSKB app designed for electronic voting on motions.

Development Stage: Fully operational, with ongoing refinement.

Target Market/Condition: Lot owners and committee members, particularly in Queensland.

Expected Timeline: Continuously available.

Key Features & Benefits:

Effortless electronic voting for motions, including out-of-committee voting options.

Automated motion results, specifically beneficial for Queensland schemes.

Live voting results for committee members (QLD only).

Developer Consulting Services

Description: Expert guidance and support for the entire lifecycle of strata developments.

Development Stage: Established service offering.

Target Market/Condition: Property developers initiating new strata-titled projects.

Expected Timeline: Available from initial project scoping through to scheme registration and ongoing management.

Key Features & Benefits:

Guidance on core titling structure arrangements.

Advice on site management strategies.

Investigations into optimal utility models for new developments.

Ensuring compliance and efficient setup for future strata communities.

4. Technology & Innovation

Technology Stack

SSKB Strata Managers leverages a robust and innovative technology stack to deliver efficient and transparent strata management services.

Core Platforms and Proprietary Developments:

SSKB App & MySSKB Website: These are proprietary, custom-built platforms providing a comprehensive digital ecosystem. They enable lot owners and committee members to manage multiple lots, access financial statements, view notices, make online payments, contact the SSKB team, and facilitate committee communications. The platforms are designed with a "committee-first" approach to optimize efficiency and accessibility.

Click2Vote: Integrated into the SSKB app, this proprietary platform streamlines electronic voting for motions, offering out-of-committee voting and automated result tallying, particularly for Queensland schemes.

Online Forms and Client Solutions: SSKB offers a suite of interactive online forms for various administrative tasks, enhancing client convenience and reducing manual processing.

Industry-Leading Software:

StrataMax: SSKB utilizes StrataMax, a recognized industry-leading software suite dedicated to advancing strata management through cutting-edge functionalities.

Technical Capabilities:

Digital Accessibility: Providing 24/7 access to critical strata information and services through mobile and web applications.

Streamlined Communication: Features like revamped chat functionality and improved notification systems enhance real-time communication within committees and with SSKB teams.

Automated Processes: Implementation of automated voting results and online forms for increased efficiency.

Paperless Initiative: An active transition towards a paperless operational environment reflects a commitment to digital processes and environmental sustainability.

These technological investments underscore SSKB's dedication to innovation, improving user experience, and maintaining leadership in the strata management sector.

5. Leadership & Management

Executive Team

SSKB Strata Managers is led by an experienced and dedicated executive team:

Daniel Herbert – Chief Executive Officer

Professional Background: Joined SSKB in 2017. Prior to this, held extensive leadership roles at Queensland Rugby Union, including Head of Strategy, Chief Commercial Officer, and Executive General Manager. He has served as a Non-Executive Director of Rugby Australia since 2020.

Notable Achievements: Appointed Chair of the Board of Rugby Australia in November 2023.

Key Contributions: Drives the company's strategic direction, with a focus on understanding and delivering client needs.

Jess Beckett – Chief Strata Officer

Professional Background: With SSKB since 2013, she manages complex schemes in Brisbane. Holds expertise in all aspects of body corporate management, including BMS and layered schemes.

Key Contributions: Aligns with SSKB’s mission to make a positive difference for lot owners, bringing deep strata management expertise to the leadership team.

Peter Todd – Chief of People and Culture

Professional Background: Joined SSKB in 2021 after a 30-year career in private secondary education and the tertiary sector.

Key Contributions: Passionate about education, training, and people development, working across all staff levels at SSKB and Star BMS to foster a strong organizational culture.

Jamie Tim – Financial Controller

Professional Background: Started as a company accountant with SSKB in 2015 and was appointed Group Financial Controller in 2023. She is a qualified Chartered Accountant with over 12 years of experience, including previous work in KPMG's Gold Coast audit team.

Key Contributions: Oversees the financial health and reporting for the group, ensuring fiscal integrity and strategic financial management.

Brendan McGrath – Head of Innovation and Technology

Professional Background: Brings over 15 years of leadership and management experience across diverse industries, with a background in marketing and psychology.

Key Contributions: Drives collaboration, optimization, and transformation through technology to ensure SSKB maintains its market leadership and innovates its service offerings.

Kate O'Rourke – Brisbane Strata General Manager

Professional Background: In the body corporate industry since 2005, holding a Certificate IV in Property/Real Estate.

Key Contributions: Manages a significant portfolio in Brisbane, focusing on building long-lasting relationships and ensuring client satisfaction.

Tom – Gold Coast Strata General Manager

Professional Background: Joined SSKB in 2024, bringing senior leadership experience from the hotel accommodation industry, managing large-scale hospitality assets under corporate and strata-titled ownership structures.

Key Contributions: Oversees Gold Coast strata operations, leveraging his extensive experience in managing complex property portfolios.

Brendan Edwards – Sunshine Coast and Far North QLD General Manager

Professional Background: With SSKB since July 2009, bringing over 15 years of experience in hotels and resorts, including four years as a Resident Unit Manager.

Key Contributions: Manages a broad portfolio from Morayfield to Hamilton Island, offering a unique perspective on body corporate issues.

Charlotte Divall – Gold Coast Strata General Manager (also General Manager GC and NSW since 2017)

Professional Background: With SSKB since 2008.

Key Contributions: Leads an energetic and professional team, managing large and complex portfolios with a focus on achieving financial goals and legislative compliance.

Tim Sheehan – Director

Professional Background: With SSKB since May 2000, becoming a Director in 2004. Holds degrees in Law and Commerce and a Certificate IV in Body Corporate Management. Previously a solicitor in strata development and management rights law and a past President of Strata Communities Australia (QLD).

Key Contributions: Provides extensive legal and industry expertise, particularly in advising developers and navigating complex strata legislation.

Recent Leadership Changes

Acquisition by Bright & Duggan Property Group (August 2024): This marked a significant organizational change, though SSKB's senior management team is expected to remain with the business and has the scope to become equity partners, aligning with Johns Lyng Group’s business partner model.