PROGRESS REPORT ON THE PROPERTY SECTOR CHARTER

1. PROGRESS REPORT ON THE PROPERTY SECTOR CHARTER Presentation to Portfolio Committee on Public Works 22 May 2012

2. PROPERTY SECTOR - SCOPE • Property Sector • Residential Property Industry • Houses • Flats, Clusters, Town Houses etc • Commercial Property Industry • Office Property Industry • Industrial Property industry • Retail Property Industry • Leisure Property Industry

3. PROPERTY SECTOR UNIVERSE COMMERCIAL RESIDENTIAL INDUSTRY OFFICES COMMERCIAL RESIDENTIAL PROPERTY INDUSTRIAL PRIVATE RESIDENTIAL PROPERTY RETAIL FORMAL RESIDENTIAL LEISURE HOUSE TOWNHOUSES/FLATS CLUSTERS INFORMAL RESIDENTIAL PROPERTY SECTOR - SCOPE

4. PROPERTY CHARTER - SCOPE • Property Sector - Segments • Property Owners • Institutions • Private • Property Loan Stock Association - PLSA • Association of Property Unit Trust Companies - APUT • Property Services • Facility Managers • Property Managers • Brokers • Estate Agents • Professionals • Valuers • Regulators • Government • Nedlac

5. PROPERTY CHARTER – COUNCIL MEMBERS • Organisations/Associations • Government • NDPW – National Department of Public Works • Regulators • SACPVP – SA Council of Property Valuers Profession • EAAB – Estate Agency Affairs Board • Owners • PLSA – Property Loan Stock SA • APUTS – Association of Property Unit Trust Stock • Professionals • SABTACO – SA Black Technical Association Career • BPVA – Black Property Valuers Association • BPVA – Black Professional Valuers Association • Estate Agents • IEASA – Institute of Estate Agencies of SA • NPF– National Property Forum • Women • AWIP – Association of Women in Property • WNP- Women Network Properties • Others • SAIBPP – SA Institute of Black Property Practitioners • SAFMA – SA Facility Managers Association • SAPOA – SA property Owners • SACSC – SA Council of Shopping Centers

6. PROPERTY SECTOR • Values • Sector Size • Second biggest after mining • During the 5% growth, 1.5% was attributed to property

7. PROPERTY SECTOR- VALUE

8. SETTING UP AND GAZZETING OF PROPERTY SECTOR CHARTER

9. PROPERTY CHARTER – process • Initial stages- Phase 1 (Dec 03-Dec 04) • Set up structures – to initiate the process • The late Min Stella Sigcau launched the property charter process – July 2005 • Pulled all property Stakeholders together • Discussion Started around the scorecard • Initial drafting of the charter • Secondary Stage – Phase 2 (Jan 05-Dec 05) • Further consultation • Setting up of steering committee team • Drafting of the charter • Signing of Charter – March 2006 • All stakeholders agreed in the formation of the Property Charter Council and signing of the constitution – October 2007 • Property Sector Charter under section 12 of B-BBEE Act was published – October 2007 • Property Charter Section 12 was gazetted – November 2007 • Property Charter published under section 9(5) Oct 2010

10. PROCESS FOR GAZETTING • 2007 • All stakeholders agreed in the formation of the property charter council and signing of the constitution • Gazetted under Section 12 • All stakeholders agreed in the formation of the property charter council • PSCC office set up • Council & board appointed • Appointed CEO • 2010 • Gazetted under section 9(5) • Opened for public comments & analysis period • 2011 • Analysis of public commentary • 2012 • Adjusted the targets to 6-10 targets • Gazetted under section 9(1)

11. OBJECTIVES OF THE PROPERTY SECTOR CHARTER

12. KEY STRATEGIC OBJECTIVES OF 2012 • Increase brand recognition and build PSCC as a respected authority • Execute the enabling model for the implementation of PSTC by stakeholders • Establish an efficient, effective & compliant PSCC organization • Develop an effective & efficient communication strategy both internally & externally • Develop information management capacity • Capacitate the organization with support staff

13. GORVENING STRUCTURES OF PROPERTY SECTOR CHARTER

14. PROPERTY CHARTER – Governance • Corporate Governance • Council members • All signatories of the constitution and gazetted Property Charter • Schedule meetings • Twice a year (dates agreed a year in advance) • Board Members • Appointed by the council • Representative of different segments of the sector • Scheduled meetings • Once a quarter (4 times a year) – dates agreed a year in advance • Exco Members • Appointed by the board (5 members) • Support the CEO with operational issues • Scheduled meetings • Once a month (12 times a year) – dates agreed a year in advance

15. PROPERTY SECTOR CHARTERCOUNCIL COMPOSITION

16. THE PROPERTY CHARTER BOARD COMPOSITION 16

17. GOVERNANCE STRUCTURE MEETING FREQUENCY COUNCIL MEMBERS Twice a year BOARD MEMBERS Quarterly/ Bi-Monthly EXCO Month COMMITTEES project CEO

18. UNDERSTANDINGPROPERTY SECTOR CODE

19. CODES OF GOOD PRACTICE SED -5 pts Control -10 pts Skill Development -15 pts Employment Equity - 15 pts Enterprise Development - 15 pts Preferential Procurement - 20 pts Ownership - 20 points

20. CODE OF GOOD PRACTICE • These are the DTI Codes adopted in terms of the Generic Score Card; • The sectors that do not have a Sector Transformation Charter use these; • Sectors that have Sector Transformation Charters have to use sector code. • They are allowed to deviate to accommodate sector specific issues; • Deviations have to be discussed and agreed with DTI.

21. Code 000: Generic Codes

22. Code 000: Generic Codes • This is a comparison of Generic Codes with Property Sector Specific Codes – illustrating deviations – e.g. • Enterprise Development; • Economic Development.

23. DEVIATIONS:ECONOMIC DEVELOPMENT

24. IMPLICATIONSPROPERTY SECTOR CODE

25. IMPLICATION OF GAZETTING UNDER Sec 9(1) • Every operation under the defined scope has to comply • Obligated to use the Property Sector Code Scorecard • No need to do 2 scorecards • Only the Property Sector Charter will be recognised • Effective immediately – i.e. no transition period • Need to use Accredited Verification Agencies or Accredited Auditors (Accredited by IRBA for BBBEE verification or SANAS) • Analyse your status • Inception meeting explain the process • Identify the required information • Gather information • Analyse the information • Coupled with interviews and other methods of verification • Use the methodology to arrive at a status level

26. BBBEE STATUS MATRIX

27. BASELINE & ANNUAL REPORTING

28. BASELINE SURVEY • What is a baseline Survey • Survey designed to establish current status of the property sector in terms of transformation • Objectives • Gives us base from where we are stating • Highlight area of focus and where PSCC can support • Monitor and report on progress • Generate industry and sector reports with authentic trends • Tools • DTI IT portal accessed via internet • Portal has questionnaires - based in line with the Codes of Good Practice for Broad-Based Black Economic Empowerment • Portal is linked to all registered verification agencies

29. ANNUAL REPORTING • Reporting is a gazettes function of all Sector Code • Frequency – annual main report • Quarterly – smaller reports • Role – Monitor the trend – progress or lack thereof • Standardized Format – determined by DTI • Reports circulation • Line Ministry • The DTI • PSCC Council members

30. Advocacy Work • With the gazetting of the Property Charter Codes in terms of Section 9 (1) of the BBBEE Act, DPW in partnership with the Charter Council shall roll-out road-shows aimed at training and promotion on the property charter Codes – from August 2012; and • Advocacy work will further target broader formal beneficiary organisations beyond current Charter Council representatives; • Public Sector workshops on the implementation and alignment of state programmes with the Property Charter and related property transformation policies will be held with all spheres of Government and State Owned Enterprises (SOEs).

31. Government processes & alignment • In support of the transformation of the industry through Property Sector Charter and internal BBBEE provisions, DPW has: • Developed and implemented a Property Management Strategy on BBBEE, Job Creation, and Poverty Alleviation: • DPW empowerment programme to support transformation. • Developed the Property Incubator Programme (PIP) as an enterprise development programme: • Creating protected environment for emerging property enterprises with work opportunities, training, mentorship and access to finance.

32. …Government processes & alignment contd • Developed Green Building Framework as part of growing the industry, entrenching international best practice, and ensuring sustainable environmental principles in the sector: • Using state immovable assets to contribute to government’s effort to reduce carbon emissions. • Develop a Small Towns Development Strategy to ensure an inclusive property industry and improveeconomic activity: • Identifying opportunities for empowerment for emerging property enterprises, cooperatives, job creation, etc.

33. WAYFORWARD • PSCC: • Discuss the gazetting of the Charter in the forthcoming June Council meeting; • Agree on communication strategy: • Launch of the Charter; • Roadshows to Provinces. • DPW: • Finalise the training manual for Government Department (all spheres) and state entities; • Begin roadshows; • Position the Department of report on the performance of the public sector; and • Continue to participate actively in the PSCC.

34. THE END THANK YOU