Amended Property Sector Code Gazetted
The long awaited Amended Property Sector Code was gazetted on 9th June under Gazette 40910. The scorecards are as follows:
Any enterprise with an annual total turnover of R10 Million or less qualifies as an Exempted Micro-Enterprise.
Despite the above, measurement of B-BBEE Exempted Micro Enterprise (EME) for the below mentioned property segments, will apply as shown in the table below:
There are two Ownership scorecards which relate to Large Enterprises: Property owning companies (target 27% black ownership) and all other companies (target 25.1% black ownership). All other companies must comply with ownership scorecard as indicated in the DTI Codes. The Qualifying Small Enterprises (QSE) targets are 25.1% black ownership for all property sector entities.
The Management Control element has been split into Management Control and Employment Equity which the DTI Codes have combined for all other sectors. Demographic Targets based on the Economically Active Population (EAP) do not apply to Management Control but do apply to Employment Equity and Skills Development.
The Economic Development element is the unique element of the amended Property sector code and measures the extent to which entities contribute towards development in under resourced areas.
There is a Complex Structure Table as attached that identifies the elements for compliance by the different Property Sub-Segments. Different Sub-Sectors have different maximum points available with only two Sub-Sectors being able to achieve the maximum of 132 and 110. However, for BEE level purposes, points are grossed up based on a formula so that no Property Sub-Sector is disadvantaged in respect of the BEE Level they can achieve. The allocation of points for Specialised Enterprises that fall under the Property Sector Code will be published at a later date.
All material subject to our Legal Disclaimers.