Together the two companies aim to control some R500 million in assets.

Mike Flax, chief executive of Spearhead, said that the new joint venture is in a position to capitalise on the property development and management opportunities for groups with a majority shareholding from the previously disadvantaged sector.

These opportunities, he added, are becoming increasingly available

from both the public and the private sectors.

'Our main thrust,' said Flax, 'will be into commercial and retail property development. In addition we will build up a portfolio of quality revenue producing and commercial properties and will generate further income through related property services.'

He added that several promising prospects are already in the pipeline.

'We see the joint venture becoming a meaningful player in the South African commercial property arena, which has thus far failed to attract attention from companies with a black ownership profile.'

Flax said that Lukhanyo would be looking to set up further partnerships in joint ventures with other property development companies.

'The joint venture will have the ability to transfer skills in property investment management and development to those from previously disadvantaged backgrounds, who may be inexperienced in this field - and this is very definitely one of the main reasons for forming the joint venture.'

The new joint venture, he added, could make a significant contribution to Spearhead's bottom line before the end of next year and Lukhanyo could end up taking a majority stake in Spearhead itself.

'We would welcome this as we intend to become more representative of South Africa as it is today.'

The Lukhanyo group, which has been in existence since last year, has declared that it is interested in investing in fishing, mining and property development, provided that it can help bring organic growth and transformation to in the companies with which it becomes involved. The company has also declared that 5% of its after tax profits will be devoted to social upliftment programmes.

Monde Mbeta, who heads up Lukhanyo Group, has had 17 years in sales and marketing for various corporate companies in South Africa. He was previously a founder member of Ikamva Investment Holdings which focused on unbundling of government assets.

He was also a director of Unicredit, now the JSE-listed Thuthukani group, and has worked for Vodac, BP (SA) and Metcash, where he was responsible for the launch of Lucky Seven and Square Stores in the Western and Eastern Cape.

Mbeta has also founded B&M Cellular, a family business. He is a member of the Black Management Forum.

For further information please contact Mike Flax at 021 425 1000.