That is the view of Arnold Meyer, the new CE of the Broll Property Group, who says that there are many smaller property managers that cannot conduct significant empowerment transactions.

Meyer says the property charter will trigger consolidation in property services businesses where property managers will take over smaller businesses, or small businesses will merge with each other.

"Long-term consolidation is inevitable in any market and the charter will most probably prompt the property industry to transform itself in every possible way," he says.

"With our participation in the drafting of the charter we are very mindful that transformation is not just about empowered shareholding but about addressing education and empowering individuals in equal measurement."

Meyer believes there are other challenges facing the property sector including its continuing relationship with government as well as expansion into Africa.

He says that by being part of the charter, the property industry will show its commitment to transformation in SA and with that its commitment to the New Partnership for Africa's Development (Nepad).

On the back of Nepad the property industry will be able to grow north of the Limpopo, Meyer says.

Broll aims to develop into Africa and have operations up and running north of the Limpopo by 2005.

"To this extent we are very pleased with our Namibian operations, where we have been operating for 18 months servicing a considerable portfolio.

"Our offices in Gaborone will open within the next couple of weeks and we are in the process of finalising an agreement, following which Broll will enter the west African market."

Brian Kirchmann, CEO of commercial property association Sapoa, says that the organisation is "delighted" that the property charter is well under way and that all major players, including government, are supporting it.

He believes that the public works department would like to drive the charter.

"From Sapoa's point of view we originally wanted to do a charter for our organisation but realised it had to be a charter for the entire property industry," Kirchmann says.

"There is a steering committee at work which represents a large part of the commercial property industry."

Sapoa hopes that all players in the property industry will support the charter, and get involved in the process, which can "only be beneficial for the property industry and the economy of the country", he says.

Apr 21 2004 08:42:59:000AM Nick Wilson Business Day 2nd Edition