South Africa’s socio-political and economic history has made it a priority for business to actively support the upliftment of previously disadvantaged South Africans through Black Economic Empowerment (BEE) programmes.

In the property industry, transformation is guided by the Department of Trade and Industry’s (DTI) Codes of Good Practise as well as the Property Sector Transformation Charter (Property Charter).

Redefine is committed to implementing these codes and is making progress in achieving its empowerment goals.

Redefine contracted Empowerdex (Proprietary) Limited, a well known black empowerment rating agency, to undertake a survey of Redefine and its subsidiaries in order to determine the level to which Redefine achieves the BEE objectives of the DTI codes. Empowerdex has acknowledged Redefine as a contributor towards BEE, but the company is yet to attain an acceptable rating due to its structure and the high level of liquidity of its units, which are owned by institutional or private investors who can trade the shares at any time.

However, Redefine is committed to activities which are not always recognised by formal BEE criteria, but which significantly assist the previously disadvantaged.

The Property Charter requires that over a five year period, 25% of the total equity of property companies is to be owned by black investors. The overall BEE unit holding in Redefine is approximately 16%, of which 6,2% are strategic BEE investors, with the balance made up of private investors.

In October 2007, Redefine concluded a BEE transaction which resulted in just under 10% of the issued units in Redefine being issued to BEE parties. This was the first step in actively introducing BEE on an ownership level above the levels suggested in the Property Charter and the DTI codes.

The BEE parties comprise both strategic empowerment partners, which have synergies with Redefine as they are active in the property sector, and broad-based black economic empowerment (B-BBEE) partners involved in community development and upliftment of previously disadvantaged South Africans.

The BEE participants are entitled to all voting rights, but are not entitled to dispose of the BEE units for a period of seven years from issue.