DTI publishes property industry BBBEE Code regulations

By gazette, Trade and Industry Minister Rob Davies has regulated for black empowerment in the property sector; the department of trade and industry (DTI) having published the Property Sector Code in terms of the Broad-Based Black Economic Empowerment (BBBEE) Act aimed at economic transformation and “meaningful participation of black people, including women, the youth and people with disabilities”.

Minister Davies said in an accompanying statement as the gazette was published that the purpose was to “promote property development and investment in under-resourced areas, which enhances basic infrastructure, encourages investment and supports micro and small enterprises”.

Having much in common with DTI’s generic BBBEE code, the Property Sector Code introduces an eighth element of the scorecard called “economic development”, which the minister said has two measurement categories. “The first one is the commitment by the entities that deal in property development to invest at least 10% of their yearly property development investments in under-resourced areas. This is a transformational infrastructure commitment with the purpose of stimulating investment in those areas, reducing service inequalities and to create economic opportunities in those areas,” the minister said.

The second was the measurement of commitment by entities in the property sector to dispose of 35% of their assets to black-owned enterprises that had a BBBEE status of level 1 to level 3 in terms of the regulations, minister Davies said, meaning, as his statement added, that such “ were given the opportunity to own and trade in assets”.

Also, a difference is apparent in that the threshold for exemption from compliance for estate agents had been reduced to R2.5m of yearly turnover and not R5m as laid down in the standard BBBEE code.

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