Real Estate Investor Magazine South Africa June/ July 2019 | Page 14

MASTER INVESTOR Restoring property rights through title deeds The FMF’s Khaya Lam ‘My Home’ Land Reform pilot project kicked off in October 2009, when the Ngwathe Municipal Council, by a unanimous vote of all political parties, took the momentous and far-sighted decision to partner the FMF in its aim to have all Ngwathe municipally-owned rental and self-built housing transferred to registered tenants at no cost to the tenants. Transformation through ownership has had beneficial consequences for the residents of Ngwathe that have far exceeded expectations. As the benefits become increasingly clear, support from private and corporate sponsors for titling projects in different areas of the country has accelerated. So far in 2019, the Khaya Lam Project expects to have converted more than 3,200 properties worth an estimated R320 million to freehold title in various parts of the country. He cut his teeth in his early days of breakneck expansion at Pep Stores, when he had to negotiate leases and source sites for new stores. But his real genius is setting up structures and taking advantage of tax opportunities. Steinhoff seemed to comply with most of these prerequisites. According to its books, it was definitely cash-generative, said Wiese. Meanwhile Steinhoff was in trouble, because someone took a gamble with its future. Whether that person was Jooste “ I’ve been very fortunate, I’ve had wonderful colleagues over the past 55 years. It appears that I made one very bad choice and the only excuse I would offer is that I made that choice in the best company: bankers, regulators, analysts, ratings agencies. “ FREE MARKET FOUNDATION KHAYA LAM REFORM PROJECT would only become clearer once all the results of PWC’s forensic audit are out. Wiese said he wanted to ask Jooste: ‘Why did you disappear? Why didn’t you stay and explain what happened?’’ Wiese continues his recount of the key factors of his success to REImag. ‘And then you have to be very cognisant of the characters you have to work with and you have to trust those people.’ The recent Steinhoff scandal is never far from the conversation for Wiese. Its presence looms large in South African business and investor circles. When Pepkor and Steinhoff joined forces at R63-billion, it was the biggest corporate deal South Africa had ever seen. So was its fallout. For over 40 years the FMF has championed the cause of converting countless forms of apartheid title and tenancy to full, unambiguous ownership. The FMF is creating a blue print to be replicated by others throughout the country. FMF Director, Temba Nolutshungu, said ‘Black land deprivation was probably the single worst element of apartheid. Ever since apartheid ended, little has changed. In South Africa today, there are still between 5 million and 7 million black households living as wards or tenants of the state without ownership of homes they have occupied for generations. There has been no systematic conversion of ‘council owned’ and ‘traditional community’ properties to full unrestricted ownership. The prospects for economic upliftment throughout South Africa, through Khaya Lam, are exciting and immense.’ Perry Feldman, retired Parys farmer and entrepreneur, and project manager of the Khaya Lam Land Reform Project, says this initiative is an essential tool for the development of a peaceful and prosperous South Africa. The cost of a single title is R2,350. Sponsors are very necessary and very welcome: individuals, companies and organisations. Anyone interested in supporting the project can contact the Free Market Foundation at 011 884 0270 or [email protected] 12 JUNE/JULY 2019 SA Real Estate Investor Magazine Building Pep stores from the ground up, Dr. Christo Wiese has created a business empire made up of various enterprises including Shoprite. With 50 years of business risk taking, it all paid off and Wiese was the richest man in the country - until he overplayed his hand with Steinhoff and lost a huge part of his fortune. This book shares his insights on business,life and his success.