Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

JSE Limited : JSE to welcome REITs regime

04/02/2013 | 08:29am US/Eastern
Recommend:
0

Johannesburg, 2nd April 2013 - From yesterday the 1st April 2013 South Africa will implement a local Real Estate Investment Trust (REIT) regime that will usher in a new era for the listed property sector. From this date all property companies currently listed on the JSE either property loan stocks or property unit trusts will convert to a REIT structure and any new listings in this sector will have to comply with JSE REIT listing requirements.

"The REIT structure is in line with international best practice and having a globally understood structure will make our listed property sector much more attractive to foreign investors. The tax advantages of the new structure will also make the listed property sector much more attractive to local investors," says Patrycja Kula Business Development Manager at the JSE. When South African listed property funds convert to this system South Africa will be the 8th largest REIT market. The REITs structure will bring about much needed tax and regulatory changes

This change follows the formal announcement of REIT tax legislation for South Africa, published on 25 October 2012 by National Treasury to introduce this internationally recognised structure in South Africa. Under this new legislation, capital gains tax is no longer payable on disposal of assets and without this tax activity in the sector will increase.

To qualify as a REIT fund, companies need to have:

  • a minimum of R300 million in assets
  • a total debt to asset ratio of no more than 60%
  • 75% income from property rentals
  • a distribution minimum of 75% of the distributable profits (dividends)

For investors, there is certainty in that 75% of all net income is paid out and tax exposure is determined only by the tax status of the recipient. International performance comparisons will be easily made and the investor is protected within an internationally defined and regulated industry.


distributed by
Recommend :
0
React to this article
Latest news
Date Title
4m ago MASHREQBANK : OSN enhances subscriber security with CyberSource
4m ago ARUBA NETWORKS : to demo 'secure, all-wireless' workplace at GITEX
4m ago NETAPP : to showcase independently at GITEX 2014
6m ago RENTRAK : Announces Official Worldwide Box Office Results for Weekend of September 21, 2014
16m ago GRUPO MEXICO DE C V : Western Mexico state reports new mine spill
19m ago DUBAI DEVELOPMENT : Deyaar debuts its first township project
19m ago CITIGROUP : Citi to expand in select business areas in the UAE
19m ago ALIBABA : What's in name? A lot at Alibaba
19m ago RAS AL KHAIMAH PROPERTIES PJSC : RAK Properties defiantly upbeat despite subdued first-half show
19m ago NEW WORLD DEVELOPMENT : Cityscape is once again a platform for sales launches
Latest news
Advertisement
Hot News 
BANCO ESPIRITO SANTO : Swiss begin bankruptcy proceedings against Espirito Santo private bank
DIXONS CARPHONE : Phones 4U says Vodafone will take 140 of its stores
ALIBABA : CORRECTING and REPLACING Alibaba Group Announces Pricing of Initial Public Offering
EREDENE CAPITAL : Sells Aboyne To Brick Eagle For GBP3 Million
ITT EDUCATIONAL SERVICES : Entry into a Material Definitive Agreement, Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing, Change in Directors or Principal Officers, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
Most Read News
1d ago FORD MOTOR : Engines for Sale Now Include Lower Priced Ford and Chevy Blocks at Parts Retailer Website
1d ago SCHERZER : Shields outpitched by Scherzer, Royals fall to Tigers in AL Central matchup
9h ago ROYAL BANK OF SCOTLAND : Relief over Scotland gives way to 'Great Stagnation' worries
1d ago ALERE : Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of Alere Inc. Stockholders
11h ago SOFTBANK : estimates $4.6 billion gain from Alibaba listing
Most recommended articles
43m agoDJInvestors Bet on Asia Despite U.S. Rate Threat
1h ago EXCLUSIVE : Siemens near deal to buy Dresser-Rand - sources
2h ago Italy says inefficiency delays public sector debt repayments
2h ago SIEMENS : Exclusive - Siemens near deal to buy Dresser-Rand: sources
3h ago Canada's Oliver says no major shift in mortgage policy for now
Dynamic quotes  
ON
| OFF