Special Commendation — Drivers of Change Award: Gerald Leissner
Gerald Leissner was awarded a special commendation by the investing judges for his contribution to poverty and inequality alleviation in Southern Africa.
”It is the application of the South African government’s BEE policy that singles out his contribution to poverty alleviation,” they said. ”With his company, he used a government policy to harness the power of the market to produce significant social good.”
Leissner has been involved in a variety of organisations and activities and has been recognised by former president Nelson Mandela for his outstanding leadership and for being in the forefront of the fight for human rights. He has been described as one of the most significant Jewish philanthropists in South Africa.
Leissner has dedicated a large part of his life to helping organisations that fight to overcome poverty and inequality. These include the Central Johannesburg Partnership, the Inner City Housing Upgrading Trust, Foundation 2000 and the Yeshive College.
But, it was his application of South Africa’s BEE policy in his company, ApexHi, that is really commendable. Leissner shaped his business’s model by using the BEE framework as its foundation to assist in poverty alleviation projects.
He believes the model can be implemented by many public companies and become a significant tool for redistribution of wealth.
ApexHi was formed in 2001 as a loan stock company at a value of R15-million and with 15 properties to its name. Leissner was the founding chief executive and has steered the company to its status as the second-largest listed South African property company on the JSE, with about 235 properties to its name and an estimated value of more than R6-billion.
As part of the BEE framework ApexHi was encouraged to make a minimum of 10% of capital available to black shareholders. Under Leissner’s guidance, however, the company implemented an innovative BEE policy that not only ensured that black shareholders could participate in the spectacular growth of the company but also that capital and income could be transferred to groups that were involved in poverty alleviation activities in South Africa.
Leissner created a model that encouraged its listed shareholders to sell their shares to new BEE partners, ensuring they too benefited from the transaction. This enabled the company to sell a large number of its units to BEE groupings. While 50% of the BEE allocation went to a black commercial partner, the balance, worth R75-million, was offered to a broad-based empowerment trust.
”One of ApexHi’s key objectives in selecting the BEE shareholders was to ensure a significant proportion of the economy benefits that flow from the transaction would contribute to communities and persons who historically have been, and continue to be, the most disadvantaged members of the South African economy,” Leissner said.