The move adds to a string of partnerships being formed between established property companies and black empowerment groups, amid mounting pressure on the property industry to transform.

Spearhead CE Mike Flax says the new joint venture intends to capitalise on the property development and management opportunities available to groups with black empowerment majority shareholdings.

'Our main thrust will be into commercial and retail property development,' says Flax.

'In addition we will build up a portfolio of quality revenue-producing and commercial properties and generate further income through related property services.'

He says there are several promising prospects in the pipeline.

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

Flax says the joint venture, which aims to control assets worth R500m in the medium term, could make a significant contribution to Spearhead's bottom line before the end of next year. Spearhead's property portfolio is currently worth about R 337m.

Lukhanyo could also end up taking a majority stake in Spearhead. The company was established last year to make investments in the fishing, mining and property development industries, particularly in operations where it can add value.

It is headed by Monde Mbeta, who has 17 years experience in sales and marketing in various companies including Thuthukani Group, Vodac, BP (SA) and Metcash.