MILLENNIUM Consolidated Investments (MCI) Properties' acquisition of about 5% of Capital Property Fund this week signals a new empowerment trend in the listed property sector.

Property pundits now expect more empowerment initiatives in the traditionally white-dominated listed property sector.

In a deal announced last week, MCI Properties, which is part of the MCI group chaired by businessman Cyril Ramaphosa, acquired R50m worth of units in Capital Property Fund.

Last month, MCI Properties acquired a 50,4% interest in Property Fund Managers, the asset management company of Capital Property Fund, in a black empowerment deal facilitated by Old Mutual.

At that time Ramaphosa was appointed chairman of Capital Property Fund.

ApexHi Properties is the other listed property fund that has done a black empowerment deal in recent times. Mvelaphanda Holdings has a 25% stake in ApexHi's asset management company.

But the Capital deal is different in that it is the first time an empowerment player has bought a stake in the fund and not just the asset management company.

Mariette Warner, fund manager of the Stanlib Property Income Fund, says that judging from market sentiment it is likely there will be further empowerment transactions in the listed property sector.

"This could address an element of the property charter, which is currently under discussion, as it will result in indirect black ownership of investmentgrade commercial property," Warner says.

She says empowerment deals could become a "major trend" in the sector.

Warner says MCI Properties' purchase of units in Capital Property Fund means property ownership as opposed to buying a stake in the asset management company of the fund.

She says the listed property sector will also be attractive to empowerment players.

"Because of the current perceived risks in the equity and bond markets, property's favourable fundamental environment offers the best risk-adjusted investment opportunities."

David Green, MD of commercial property brokering firm Pace Property Group, says the market is seeing a trend towards "more empowerment in the listed property sector".

"I think we are going to see funds coming to the market with a heavy empowerment flavour."

Green is aware of three funds, which have not yet listed, that will have management companies that are 100% black empowered.

In addition, the shareholding of these funds is going to be spread predominantly between parastatal, government and black enterprise, he says.

"The black population for a long time could not participate in the property market and the listed property sector is now going to provide the cheapest entry level for individuals to get into the market."

Green says an individual can buy into the listed property sector for under R200.

"That's quite attractive," he says. "Black enterprises are now becoming very aware of property as an asset class."