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The Property Charter The Council For Built Environment 30 March 2007. Property Business. Distribute income returns. INVESTORS. Attract equity investment capital. Finance Costs. DEBT FUNDING. Borrowings. Property Services Procurement Professional Services. Invest in suitable property.
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The Property CharterThe Council For Built Environment30 March 2007
Property Business Distribute incomereturns INVESTORS Attractequity investmentcapital FinanceCosts DEBTFUNDING Borrowings • Property Services • Procurement • Professional Services Invest in suitable property BUILDINGS Maximise net rentals Growing rentals Meet space needs of tenants TENANTS
The Property Charter • As contemplated in terms of statement 010 of DTI codes of Good Practice and the Broad Based Black Economic Empowerment Act (No. 53 of 2003) • The DTI Codes of Good Practice framework and measurements apply to the Property Sector Charter • Ownership • Control • Employment Equity • Skills Development • Preferential Procurement • Enterprise Development • Corporate Social Investment
Charter Objectives • To address the imbalances of past • Part of South African indigenisation programme (DTI Codes of Good Practice) • Bring black people into all activities in the property sector • Address property sectors’ perceived 11 year transformation lag • Establish framework for government and the private sector to transact
Steercom Proposed Charter Council SAIBPP SAIV SAPOA PLS PUT WPN EAAB SABTACO SACSC AWIP DPW Charter Committees TECHNICAL TEAMS (experts provided by all organisations) Property Sector Transformation Charter Committee (PSTCC) “Steering Committee” BUSINESS CAUCUS Effective representation from black business & established business. Property Charter Exco GOVERNMENT CAUCUS Coordinate input of all public sector institutions and govt depts. SAPOA SABTACO EAAB SAIBPP DPW
The Charter Council • Eskel Jawitz - Chairman Jawitz Properties • Saul Gumede - MD Dijalo Properties • Musa Ngcobo - CEO Kensani Properties • Estienne de Klerk - Executive Director Growthpoint • Caswell Rampheri - Director Liberty Properties • John Rainer - MD Grayprop • Nyameka Madikizela - Director Imfihlakalo Asset Management • Oarona Kgama - Director Loato Properties • Alex Phakathi - MD Pareto Limited • Marna vd Walt - CEO Gensec
Status of the Charter process • Signed on 17 March 2006 • Charter Council established • Statement 010 compliance • MOU signed by major shareholders • Industry funded • Industry wide consultation • Advance the transformational objective of BBBEE Act • Principles, definitions and elements consistent with DTI Code of Good Practice • All deviations justifiable • Establishment of Charter Council to be integrated into BBBEE Advisory Council underway
Basic Calculation A=BxD C A is the Achieved score B is percentage in the hands of black people C is the charter compliance target D is weighting allocated to the element
Deviation from DTI Codes • 5 year targets • Deviation Disposal of assets Property services enterprises Mentorships Development in under developed areas • Interim targets
Realisation points Net equity value calculation Deviation from DTI Codes
..non applicable element will be excluded from the numerator and the denominator • If any uncertainty ….statement 100-700 prevails
Conclusion “The charter is merely a mechanism that is only as effective as the energies of the champions who will be tasked with the responsibility of implementing them.” Honorable MP, Ms. Stella Sigcua
THANK YOU www.propertycharter.co.za