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
<1m ago RESEARCH AND MARKETS : LTS & HTS Superconductors - 2014 Global Strategic Business Report
<1m agoDJLloyds Banking Group plc 3Q 2014 -- Forecast
1m ago HENGAN : Good month for.../bad month for...
1m ago Jamaica Broilers chairman makes Hall of Fame
1m ago THUNDER MOUNTAIN GOLD : Updates Private Placement Financing
1m ago Gleaner pensioner passes on at age 79
1m ago CFTC U S COMMODITY FUTURES TRADING COMMISSION : Obtains Default Judgment against Texas-Based Financial Robotics, Inc. for Fraudulent Forex Scheme
1m ago MOSKOVSKAYA BIRZHA : Moscow Exchange to launch MOEX Board indicative quotation system
1m ago POSTMEDIA NETWORK CANADA : Reports Fourth Quarter Results Management’s Discussion and Analysis Consolidated Financial Statements Q4 F14 Investor and Analyst Conference Call – Slide Presentation
2m ago UTAH MEDICAL PRODUCTS : Entry into a Material Definitive Agreement (form 8-K)
Latest news
Advertisement
Hot News 
DIGITAL RIVER : Announces Agreement to be Acquired by Investor Group Led by Siris Capital Group for $26.00 per Share in Cash
4IMPRINT : Full Year Expectations Underpinned By Strong Third Quarter
MERIT MEDICAL SYSTEMS : posts 3Q profit
LAYNE CHRISTENSEN : Assigned Patent
First Niagara Reports Third Quarter 2014 Results
Most Read News
1d ago AMAZON : took $170 million charge in Q3 on phone inventory, supplier costs
1d ago JUNIPER NETWORKS : AMC Networks buys 49.9 percent stake in BBC America
1d ago LOCKHEED MARTIN : Exclusive: Lockheed, Pentagon reach $4 billion deal for more F-35 jets
10h ago PFIZER : authorises share repurchase
1d ago Microsoft sales beat Street hopes, cloud profits up
Most recommended articles
2m ago Ebola is a potential black swan for markets - ETX Capital
4m ago 25 EUROPEAN BANKS FAIL STRESS TESTS : sources
7m agoDJBP plc 3Q 2014 -- Forecast
8m agoDJBBVA SA 3Q 2014 -- Forecast
9m agoDJBG Group 3Q 2014 -- Forecast
Dynamic quotes  
ON
| OFF