The property sector needs to speed up transformation, particularly in rural and peri-urban areas, where there are opportunities to uplift communities by promoting infrastructure development and service delivery. The amended Property Sector Code, setting a black ownership target of 27% for companies that own property, came into effect on June 28 and is binding on entities and organisations operating in the sector. It is higher than the 25% black ownership target of the generic codes and has also set a target for established companies to financially support those that are at least 51% black-owned. This measure has been introduced to make capital available in the sector to enable black-owned companies to develop and acquire properties. The critical issue is that property development is capital-intensive and it takes time to accumulate the necessary capital. This does not work in favour of black property developers. For example, if you’re looking to raise R100m from the banks for a comm...
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