Wholly black owned property management company, Hermans & Roman Property Solutions (Pty) Ltd (H&R), has launched the first BBBEE deal, a property fund branded Supreme Commercial Property Fund, in the history of the South African Commercial Property Industry. The property industry has historically been reported to be slow in achieving true Broad Based Black Economic Empowerment despite the introduction of the Property Charter.
The fund was launched at an event held at The Radisson Blu in Sandton (27 May 2010) and was attended by prominent players representing more than half the commercial property sector which included government officials, all the major South African banks, investors, pension funds, asset managers and industry bodies. Minister Geoff Doidge, Minister of Public Works, was the keynote speaker and Kura Chihota, presenter on the DSTV property channel, "Ask the Expert", was the master of ceremonies.
"This is a momentous achievement in the history of the South African Commercial Property Industry and we are proud to be the promoter of this project. The establishment of Supreme will fast track the objectives of the Property Charter", says Leslie Hermans, H&R Group Chief Operating Officer.
Objectives of Supreme
The primary objective of the Supreme Commercial Property Fund is to provide investors with a secure income, in terms of both income and capital returns. The fund aims to make a measurable difference towards the transformation of property ownership at an equity level, contribute to corporate social investment through the Supreme Property Community Trust, skills development and training of previously disadvantaged individuals through the Hermans & Roman Academy of Learning and enterprise development, at a property ownership and equity level.
Minister Geoff Doidge's Speech
Minister Geoff Doidge referred to the launch of Supreme Commercial Property Fund as a significant milestone in the relationship between government and the property industry. Government and the private sector have always been co-players, however with the establishment of the fund and the positive and proactive approach by the leadership of Hermans & Roman Property Solutions, private sector and Government become participative partners. The Minister further commented that Government and private sector together will address the inequalities of the past, unlock the potential that the industry offers and assist with the huge infrastructural backlogs in South Africa. Priority areas for this partnership and key objectives identified by Supreme are skills development, women's equity, job creation and youth empowerment. Minister Doidge reiterated that Government is determined to transform the property industry.
About the Supreme Commercial Property Portfolio and Targets
Supreme shall be an unlisted entity with the aim of listing in the near future. The targets for the fund include assembling and acquiring R4 billion worth of properties by December 2010. The properties in the fund are predominately occupied and leased by government. To date, R3 billion has been secured and an additional R2 billion is under negotiation. Future targets include the assembly of properties worth R10 billion in the next 3-5 years and R20 billion in 10 years.
"Government, as the largest property owner in South Africa, with a property holding of approximately R400 billion, was identified as being a major catalyst of change in property ownership in the industry with the assistance of the private sector. We are confident that we will surpass our targets. Transformation of property ownership has been largely curtailed by the lack of access to capital by BEE consortia and black investors. We are determined to maximise the black ownership in the fund by focusing on ‘black' capital. We aim to take this initiative to the man on the street and create opportunity for wealth creation for the previously disadvantaged individuals with the establishment of a secondary market through critical mass and the OTC (over-the-counter) trading mechanism which will provide liquidity for shareholders", says H&R Group Chief Operating Officer, Leslie Hermans.
About Hermans & Roman Property Solutions (Pty) Ltd
Hermans & Roman Property Solutions, under the astute leadership of Kevin Roman (H&R Group Chief Executive Officer) and Leslie Hermans (H&R Group Chief Operating Officer) have had tremendous success since its inception in April 2002. The operations focus on property management within the retail, commercial and industrial sectors, development facilitation and a division specializing in public sector property management. They have managed properties in excess of R20 billion with an impressive client base including listed entities and institutional investors and employ 230 qualified and experienced staff nationally. The latest achievement includes the highest BBBEE rating achievable, a Level 1 status and the achievement of an ISO 9001 certification for quality management systems in property management awarded on 31 March 2010 by SABS.
With a successful and impressive track record, Hermans & Roman Property Solutions are set to achieve its goals and as its slogan explains, under the leadership of Kevin and Leslie is a "Dynamic Force in Property Solutions".
