BRIEFING NOTES AND BACKGROUND TO THE LAUNCH OF THE TRANSFORMATION PROCESS IN THE PROPERTY INDUSTRY

The Department of Public Works is an integral part of the property industry in South Africa by virtue of it being the custodian to government's largest fixed property portfolio.

• State land held by National and Provincial government comprise +- 24, 9 million hectares, consisting of more than 188 000 land parcels.
• Government is the biggest client of the construction and property industries. In 2003/04, government spent just over a billion rand (R1, 07 billion) to lease properties from the private sector as part of accommodating government departments.
• In the same period, the Department of Public Works disposed of one hundred and twenty one (121) properties, in extent four thousand five hundred and sixty five (4565) hectares, mostly for land reform initiatives and low cost housing and related municipal infrastructure, further stimulating property development in the country.
• Government intends using its procurement muscle to bring about transformation in the industry.
• The property sector reflects some of the glaring inequities from our apartheid past. South African apartheid laws discouraged property ownership by black people and women. As a result, property ownership is racially skewed in favour of one racial group.
• Government with the cooperation of the Property Industry, is leading an initiative to promote growth, development and transformation of the property industry in South Africa in line with the Broad Based Black Economic Empowerment guidelines.
• The parties made up of major representatives from the property industry have signed a Memorandum of Understanding and also constitute a Property Sector Transformation Charter Steering Committee include:

i. South African Property Owners Association

ii. South African Institute of Black Property Practitioners

iii. South African Institute of Valuers

iv. South African Facilities Management

v. Women Property Network

vi. Estate Agents Affairs Board

vii. South Africa Black Technical and Allied Career Organisation

viii. South African Council of Shopping Centres

ix. Institute of State Agents of South Africa

• The Property Sector Transformation Committee has been established for the purpose of driving the Grafting of a Transformation Charter in line with BB BEE ACT.
• Terms of Reference include:

i. Promoting equal opportunity and access for the previously disadvantaged individuals and companies

ii. Creating a world class, competitive property industry

iii. Fulfilling Constitutional imperative of redressing historical and social inequalities and promoting Bill of Rights