Absa Real Estate Management has launched a Black Economic Empowerment (BEE) transaction to the value of R375-million over five years that has resulted in the outsourcing of Absa’s residential valuations department.
The outsourcing involves the establishment and contracting of eight regionally
based valuation companies. In the four smaller regions (KZN South, Polokwane,
Mpumalanga and Bloemfontein) they are 100% owned by staff. In the four larger regions (Cape, Durban, Johannesburg and Pretoria) they are taken up by consortiums of 26% staff, 37% BEE ownership and 37% quantity surveying practices.
The overall BEE shareholding will stand at 40%.
“Taking into account the shortage of valuation expertise in the market, as well
as Absa’s new e-Business initiatives, we had to make a decision between right-sizing or empowerment,” says Israel Skosana: Absa Group Executive Director. “Absa chose empowerment.
“The majority of valuation companies are small to medium sized enterprises with
an oversupply of work and an undersupply of skills. Absa recognises this need and is mindful of the macro socio-economic challenges facing this industry. As far as Absa is concerned, BEE is a business necessity, hence Absa’s pro-active stance.”
In addition to creating the eight agencies, Absa has also appointed fifteen in- house and previously disadvantaged graduates to be trained as commercial property
valuers. This is a four-year programme, which combines Technikon education with in-house practical experience and will cost Absa R3-million per year. – I-Net Bridge