Property sector accused of missing BEE targets

Johannesburg - The property sector remained untransformed in line with black economic empowerment (BEE), which was a challenge, said Nkuli Bogopa, the president of the SA Institute of Black Property Practitioners (Saibpp) said last week.

Bogopa said there were a few black professionals heading funds and not enough black people in the sector. She said more black people needed to benefit from the sector.

According to Bogopa, the property industry is valued at R5.8 trillion, excluding the value chain and associated services.

“Black people are still excluded from the entire value chain which is unacceptable and unsustainable 22 years into our democracy,” she said.

In September, the SA Property Owners Association (Sapoa) raised a compliant about the government restriction on the rental escalation in contracts secured with Public Works Department.

The Public Works Department adopted an informal policy of only granting long-term leases to empowered companies and short-term leases to other landlords, which resulted in number of listed property companies selling their government office portfolio.

Bogopa said property or land ownership was important for wealth and a tool for the current stagnant economy.

She said Saibpp had recently opened the “meet the leader series” programme to open the door for graduates, might may pursue careers in the industry.

“This is where boardroom gathers for young graduates and professionals to change on leadership, career development and creating opportunities for growth.”

She said the Saibpp had to ensure the desired change was realised in the short term for the interest of all parties concerned.

“It is incumbent upon all of us that transformation be realised in order to catapult our economy to a positive trajectory and restore the dignity of the majority of our people.

“The recent spate in our country are a sure sign that the time for radical change is now,” Bogopa said.

BUSINESS REPORT