SA: Public comments sought on B-BBEE Property Sector Code

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Pretoria – The Department of Trade and Industry (dti) is inviting the public and interested parties to submit comments on the draft amended Broad-Based Black Economic Empowerment (B-BBEE) Property Sector Code.

Minister Dr Rob Davies gazetted the sector codes on 30 October.

Minister Davies said transformation of the property sector in South Africa should contribute towards reversing the legacy of the Native Land Act, 27 of 1913, and the subsequent discriminatory policy and legislation which denied black people access to productive land and property.

The Draft Property Sector Code is applicable to commercial activities in the residential and commercial industries of the property sector, as well as the value chain that includes property development, property services, property and facility management, broking, valuation, estate agents and other professional services.

Minister Davies said to accelerate an increase in the ownership of black people in the sector, the draft property sector code has set a black ownership target of 27% for property owning companies.

“This is higher than the 25% black ownership target of the generic codes. In addition, and in recognition of the fact that there is a need to make capital available in the sector to enable black-owned companies to develop and acquire properties, the draft sector code has set a target for established companies to financially support those that are at least 51% black owned.

“The value of the finance to be made available is up to 2% of the total development / redevelopment spent,” said Minister Davies.

He said the other unique feature of the Draft Property Sector Code is the introduction of an element called Economic Development, which aims to stimulate property development in under-resourced and marginalised areas. The set target is 10% of all annual investment for development or redevelopment.