Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

JSE Limited : JSE to welcome REITs regime

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/02/2013 | 02:29pm CET

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
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
05:09a MODEC : Management Change - Directors and Corporate Auditors
05:09a AFL : Scrap the bounce?
05:09aDJOil Up as OPEC Affirms Output Cut Plan
05:06a CENTENE : KP Development proposes 9-story 'boutique' Clayton office building
05:03a MITSUBISHI : Myanmar's biggest foreign-invested property project starts
04:59a FACEBOOK : Reportedly In Talks To Stream Major League Baseball Games
04:57a ECOLAB : misses 4Q expectations but posts strong 2017 forecast
04:56a UNION PACIFIC : February 15 -february 21
04:55aDJCoca-Cola Amatil MD Confident About Australia Business Despite Earnings Drop
04:54a AUSTRALIAN GOVERNMENT : Ten year roadmap released for energy resources sector
Latest news
Advertisement
Hot News 
19.07%POPEYES LOUISIANA KITCHEN : Burger King and Tim Hortons owner to buy Popeyes for $1.8 billion
-7.95%JOHN WOOD : posts 62 percent fall in FY profit, shares fall
-6.54%HSBC : Plans Further Buyback After 4th-Quarter Net Loss Widens to $4.23 Billion
3.00%AHEAD OF THE TAPE : A Big Box of Trouble for Wal-Mart -- WSJ
2.69%CBS : Simon & Schuster Cancels Publication of Milo Yiannopoulos Book
Most Read News
10:51p Las Vegas Sands CEO says Japan casino resort could cost up to $10 billion
09:51p Saudi Aramco selects lead underwriters for $100 billion IPO - WSJ
10:34p ENGENCO : Half Year Results Released
08:05pDJBRISTOL MYERS SQUIBB : Carl Icahn Takes Stake in Bristol-Myers Squibb -- 2nd Update
06:51pDJSaudi Aramco Picks J.P. Morgan, HSBC, Morgan Stanley as Lead IPO Underwriters
Most recommended articles
10:55pDJCoca-Cola Amatil MD Confident About Australia Business Despite Earnings Drop
10:51p Las Vegas Sands CEO says Japan casino resort could cost up to $10 billion
10:50p THOMAS WILSON : Las Vegas Sands CEO says Japan casino resort could cost up to $10 billion
10:29p New Zealand court grants Spark's request for pause on Sky-Vodafone deal
09:51p Saudi Aramco selects lead underwriters for $100 billion IPO - WSJ