This follows concern from several of the association’s members subsequent to the announcement by the department of its controversial plan to favour 100% black-owned property companies. The National Department of Public Works is both South Africa’s largest property owner (with a portfolio estimated to be over R100 billion in value) and user.

Established property companies with broad-based BEE structures and which comply with the Property Transformation Charter objective, which currently qualify to manage, develop or purchase a government property, as well as let space to a government businesses, could become unable to interact with government if the department’s plan goes ahead.

The plan to favour wholly black-owned groups results from the reality that currently less than 10% of department’s business is being undertaken with third party BEE entities.

“Seasoned property owners and property managers would find themselves in an unfavourable position under this strategy. However we believe that there are numerous ways that these groups can contribute to the department’s BEE objectives and contribute to further empowerment,” says Musa Ngcobo, Chairman of SAPOA’s Transformation Committee.

The development of black property owners is unquestionably important, notes Ngcobo. “However, we believe that there is also value in BEE initiatives in the form of joint ventures, enterprise development and equity participation.”

To this end, SAPOA has engaged with the director general of the department to discuss and formulate a mutually beneficial solution which would allow SAPOA’s members and the department to work together, within the same framework, complementing each other’s objectives.

“We are investigating models which assist government achieve social objectives but also allows seasoned property companies to participate and transact with government,” says Neil Gopal, CEO of SAPOA. SAPOA is calling up a workshop with its members in May to debate these issues.

SAPOA represents some 860 members which consist of property owners, property developers, property managers, large institutions, banks and other property sector stakeholders.