Syndicates get organised

Posted On Wednesday, 25 August 2004 02:00 Published by eProp Commercial Property News
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Associations set up in Western Cape, Gauteng to keep syndication above board

Sapoa CEO Neil GopalWith concern mounting that there is no official watchdog to police property syndicates, two separate associations have emerged, both wanting to keep the property syndication industry above board.

It is understood the industry is to be probed by government, but the trade and industry department has declined to comment at this stage.

One of the new organisations is the South African Association of Property Syndicators (Saaps ), formed earlier this year by wellknown South African property players based in Western Cape, a mong them property economists and valuers Rode & Associates, represented by Erwin Rode, and the Louis Group represented by Brian Louis.

Other founder members are marketing management company Blue Pointer, attorneys Du Toit & Binedell and property syndicate specialists PropDotCom.

Saaps says it is a constitutiongoverned voluntary association founded to represent, further and protect " the interests of investors, promoters and management companies ". I ts first general meeting is on October 1.

Saaps says membership is open to all unlisted southern African property syndication companies and their promoters, as well as those rendering professional or valueadded services to the industry.

In Gauteng, meanwhile, efforts are under way to resurrect commercial property association Sapoa's Public Property Syndication Association (PPSA), set up years ago to monitor suspect deals. However, with the spotlight on them, syndicates soon dwindled and the association was mothballed. But syndicates are on the rise again.

Willem Botha, MD of property syndication group Sharemax Investments, is a working committee member of the PPSA .

Sharemax, two other property syndicate players, the Financial Services Board , the registrar of companies and Sapoa are on the committee. Botha says it is reviewing the constitution, the code of conduct and ethics of the PPSA.

Its objective is to enhance professionalism and establish voluntary governance of the industry. Botha says it will in due course invite role players to a meeting on the code of conduct and constitution.

Sapoa CEO Brian Kirchmann confirms that the Gauteng syndicate players approached Sapoa to resurrect the syndication body. Sapoa agreed in principle and a committee has worked on amending the association's code of ethics.

He believes government wants to investigate creating regulations for the industry. Sapoa wants to put on hold developments with the PPSA until the findings are released.

He says he advocated the formation of one association in a telephone discussion with Saaps and suggested that all parties put plans on hold until the government investigation was complete .

Last month Kirchmann said syndication should be regulated and monitored. Problems could arise if a person or company decided to syndicate the buildings they owned by inviting investment from the public .

Unsuspecting investors sometimes lost their money after being taken in by unscrupulous owners of large commercial buildings.



Last modified on Tuesday, 10 June 2014 09:05

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