The Department of Trade and Industry has invited the public to submit comments on the draft Amended Broad Based Black Economic Empowerment (BBBEE) Property Sector Code, aimed at reversing the legacy of the Native Land Act, 27 of 1913, and subsequent discriminatory policy and legislation.
Comments could be submitted until December 30.
The draft Property Sector Code was applicable to commercial activities in the residential and commercial property industries, as well as the value chain which included property development, property services, property and facility management, broking, valuation, estate agents and other professional services.
Trade and Industry Minister Dr Rob Davies stated that the draft Property Sector Code had set a black ownership target of 27% for property-owning companies.
“This is higher than the 25% target of the Generic Codes. In addition, and in recognition of the fact that there is a need to make capital available in the sector to enable black owned companies to develop and acquire properties, the draft sector code has set a target for established companies to financially support those that are at least 51%-black-owned. The value of the finance to be made available is up to 2% of the total development and redevelopment spent,” he added.
Davies highlighted that another unique feature of the draft Property Sector Code was the introduction of an economic development element, which sought to stimulate property development in underresourced and marginalised areas.
The set target was 10% of all yearly investment for development or redevelopment.