ONE of the biggest questions for blacks wanting to work in the property business is whether the industry dominated by white males will award them contracts, enabling them to start their own businesses.

Saul Gumede, MD of black firm Dijalo Property Services, established by Gumede and Hosia Malekane more than five years ago, says many black professionals who have a great deal of experience in property believe that starting up their own business is too risky because they would not be given any work. If they believed contracts were available, more would take up the work, he says.

"If the industry is willing to transform completely, black property professionals will be willing to leave secure jobs and start property businesses," he says.

Gumede says it took a long time for Dijalo Property Services to become firmly established. The company now has about R800m worth of properties under management and does property valuations, facilities management, broking, leasing, development facilitation and property consulting.

There are black players in the property industry, but usually they focus on broking or development or consulting rather than on the whole spectrum, he says. The main reason for this is that they do not require a lot of start-up capital.

Gumede says he is aware of only two black property companies that focus on the whole property services spectrum, namely Dijalo and Hermans & Roman Property Solutions, established by Leslie and Kevin Roman.

He knows of only three property services companies with a substantial black shareholding, namely Broll, Motseng Marriott and Gensec Pam Golding.

These companies need to ensure they have black people at all levels of management, he says.

"The challenge that faces these organisations is to filter the black representation to their board of directors, executive, senior and middle management."

Without black representation at all management levels, companies won't transform thoroughly.

"Our industry needs these initiatives as long as the blacks who will be involved in these transactions will ensure that the companies transform," he says.

Black economic empowerment group Mvelaphanda Holdings, which said this week it would merge with mining-services company Rebserve Holdings, also has a 25% stake in the asset management arm of listed property loan stock company ApexHi Properties.

Gumede says that some of the barriers to blacks entering the property industry include a lack of genuine black economic empowerment in the industry and a lack of extensive exposure in managerial and executive positions .

Most players in the property industry do not see the need for transformation "because they say they see no value in doing so", he says.

"Some are saying the properties they manage are listed and therefore there is no need for them to transform. My advice is that transformation will happen in our entire industry. They are naive to think that the listed portfolios will not be affected by transformation."

On the lack of extensive black exposure to managerial and executive positions, Gumede says he is not a believer in "training, training and training".

Black men and women need to be given "genuine jobs and be left to do the jobs", he says.

"In most cases, companies believe that blacks need to understudy an outgoing white manager or executive before they can assume full responsibilities."

This approach denies black people the opportunity to question all the activities at the beginning and would also make it difficult for them to change the approach or management style at a later stage.

"If companies are serious about change, they will appoint a black man or woman, and give him or her responsibilities and the authority to manage."

Gumede says people also face a no-win situation when it comes to working in property management services. Prospective clients want to see an expensive computerised property management system before committing their business, but this is often impossible.

"In most cases you need the account or business first in order for you to raise money to finance this specialised computerised system."

May 12 2004 07:20:11:000AM Nick Wilson Business Day 1st Edition