The listed property sector of the JSE continues to lag behind other sectors when it comes to the implementation of BEE.
None of the property sector companies features in the top 50 list of the 2007 TEC ranking.
Growthpoint Properties, which leads the property sector ranking, came in at 61st position in the overall TEC list, followed by Emira Property Fund at 101 and Hyprop Investments at 107.
Though the sector hosted a couple of BEE equity deals last year, there is very little to be said about other elements of the broad-based scorecard in the property sector save for nonexecutive directorships here and there.
This may change as the sector grows as an investment destination among different portfolio managers. The property sector charter is also expected to push BEE further.
This will be followed by a number of initiatives, including robust monitoring, training and enterprise development, says charter steering committee chairman Andy Tondi.
The charter comes with a range of targets and the primary objective of transferring 25% of the property sector into black hands five years after inception.
The charter further calls for the allocation of 10% of private corporations' annual development investments to underdeveloped areas.
It aims to deliver 40% black representation at board level (20% women and 40% black executive managers, of whom 13% must be women). The charter has set a target of 70% procurement from BEE entities.
The JSE property sector has been undergoing some rejuvenation as an investment asset.
It has grown phenomenally over the past few years but has remained under the radar of many stakeholders, getting less attention from BEE pundits. The sector's total market capitalisation has grown from about R5bn in 2000 to more than R60bn, creating diversity and bigger and more liquid funds. This is beginning to attract attention.
Growthpoint has amassed assets valued at about R15bn with a market cap of about R10bn. It is expected to hit the R20bn asset-value mark in the near future. That's the sort of profile that attracts entities such as the Public Investment Corporation (PIC), which in turn will push for more transformation in the sector. (See the Growthpoint article on page 64).
Property unit trust Emira Property Fund, second in the TEC's property sector ranking, introduced black partners to hold about 14% of its units last year.
Third-placed in the sector is property loan stock company Hyprop, which scored 17,91%.
