The association, with more than 850 members including developers, property owners, property managers and professionals such as architects, said it hoped to come up with compromise models that support both the government and the private property sector’s transformation agendas.

Musa Ngcobo, chairman of Sapoa’s transformation committee, said yesterday these new models would be presented to the public works department for debate towards an “amicable solution” for industry transformation.

The Financial Mail reported last week that the public works department, the country’s biggest land owner and user, was drawing fire over a controversial plan to favour 100% black owned property companies.

The new property management strategy is reportedly causing anxiety and confusion in the commercial property industry where many black economic empowerment companies, created to feed off the department’s massive portfolio, could lose much of their business.

Ngcobo said the department’s plan was presented to property industry CEOs at a workshop held in January.

He said some Sapoa members expressed concern about the plan, saying it was in conflict with the property transformation charter. Others welcomed it as it would provide them with opportunities to secure leases, albeit shorter ones.

The government would use a graduating scale in doing business with private sector landlords. For example, if a property owner was 100% black-owned it would enter into longer leases with government tenants.

If a company was 50% black-owned, the lease would be shorter. Property owners that were 25% black-owned could secure short leases of one or two years with state tenants.

Some property players believed this conflicted with the property charter as it had a scorecard that awarded points to property players for various transformation initiatives.

For example, the charter allows a company with no empowerment equity stakeholder to earn points through enterprise development, which could involve entering into a joint venture with a black-owned property company.

The Property Charter, which was signed in March 2006, aims to place a minimum of 25% of the property sector in black hands within five years.