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

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
Latest news
Date Title
2m ago RICOH : GNU Bash “Shellshock” Security Vulnerability
2m ago IGG : Oct 19, 2014Clash of Gangs Official Worldwide Launch!
2m ago WILLIAM ACKMAN : Ackman, Valeant lawyers say Allergan CEO oversaw campaign to discredit Valeant
12m ago CHUN WO DEVELOPMENT : China New Way Inv to make offer for Chun Wo Dev
12m ago GCL POLY ENERGY : issues Rmb400m second tranche notes
12m ago ZHENGZHOU COAL MINING MACHINERY : ZMJ 9-month net profit down 62.6% to Rmb261m
12m ago WAI YUEN TONG MEDICINE : tips interim profit down over 50%
12m ago ZMFY AUTOMOBILE GLASS SERVICES : Glass to buy Heilongjiang property at Rmb48m
12m ago HSI opens up 3 pts to 23,073; H-shr down 19 pts at 10,276
12m ago SHANGHAI ELECTRIC : SH Electric 3Q net profit down 21.8% to Rmb493m
Latest news
Advertisement
Hot News 
BANCO ESPIRITO SANTO : Novo Banco's Angolan Bank to Lose Most of Loan From Collapsed Banco Espirito Santo
DOMINION MIDSTREAM PARTNERS : Entry into a Material Definitive Agreement, Change in Directors or Principal Officers, Amendments to Articles of Inc. or Bylaws; Change in Fiscal Year, Financial Statements and Exhibits (form 8-K)
NCR : Announces Preliminary Third Quarter 2014 Results and Lowers Full-Year 2014 Guidance
NUTRECO : SHV and Nutreco announce a recommended cash offer of EUR 40 per share for all shares of Nutreco
SINOCOKING COAL AND COKE CHEM IND : Aboveground Syngas Facility Commences Operations
Most Read News
4h ago Chipotle stock dips as sales growth forecasts come down
1h ago Total CEO de Margerie killed in Moscow business jet accident
2h ago New Microsoft CEO pay tops $80 million with big stock awards
5h ago GULFMARK OFFSHORE : Announces Third Quarter 2014 Operating Results
4h ago Lockheed says has plan to catch up on F-35 deliveries by year-end
Most recommended articles
1m ago WILLIAM ACKMAN : Ackman, Valeant lawyers say Allergan CEO oversaw campaign to discredit Valeant
11m ago Aussie Dollar Edges Higher on China GDP, Yen May Rise on US Data
15m agoDJChina Growth Slows to 7.3% -- Update
17m ago EUR/USD Downside Momentum Fades As Intraday Dojis Signal Indecision
18m agoDJCEO of French Oil Giant Total Dies in Moscow Plane Crash -- Update
Dynamic quotes  
ON
| OFF