Members of the public and interested parties are invited to submit comments in writing by the 30 December 2015, on the draft Amended Broad Based Black Economic Empowerment (B-BBEE) Property Sector Code. The Minister of Trade and Industry, Dr Rob Davies gazetted the sector codes on the 30 October 2015 in terms of section 9(5) of the B-BBEE)
Davies says that transformation of the property sector in South Africa should contribute towards reversing the legacy of the Native Land Act, 27 of 1913, 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 which include property development, property services, property and facility management, broking, valuation, estate agents and other professional services.
Minister Davies states that to accelerate an increase in 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,” adds Davies.
According to Minister Davies, the other unique feature of the Draft Property Sector Code is an 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.
Sidwell Medupe-Departmental Spokesperson
Tel: (012) 394 1650
Mobile: 079 492 1774
E-mail: [email protected]