Press Releases - 02 June 2010
Hermans & Roman launches the first BBBEE Property Fund
“Hermans & Roman Launches the First BBBEE Property Fund”
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”.
Issued by HWB Communications (Pty) Ltd on behalf of Hermans & Roman Property Solutions.
For information, please contact:
Athalea Minnaar
Hermans & Roman Business Development Manager
Tel: 021 928 4000
Email: aminnaar@herom.co.za
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