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 CEST

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
09:51a GLOBAL ECOLOGY : & Biogeography Issues Six Research Articles in May 2017 Edition
09:49a HONDA MOTOR : BC-CAR--INDY GP of Alabama Lineup BC-CAR--INDY GP of Alabama Lineup BC-CAR--INDY GP of Alabama Lineup
09:43a HONDA MOTOR : Bianchi Motors Inc
09:43a WORLD BANK : Afghanistan Residents Benefit from Improved Quality Healthcare in Balkh Province
09:26a SPICEJET : plays Jan-Man-Gan with passengers strapped to seats
09:22a TIFFANY : 20170423_nat_person
09:13a NIOC NATIONAL IRANIAN OIL : Italy’s Saras Reimburse Entire Oil Debt with Iran
09:13a NIOC NATIONAL IRANIAN OIL : Iran Inaugurates Mega Gas Projects
09:09a NASPERS : Pieterse heroics as SuperSport KO Chiefs
09:09a AFCON : Chiyangwa’s Warriors bombshell - The Standard
Latest news
Advertisement
Hot News 
6.05%WS ATKINS : Canada's SNC-Lavalin to buy WS Atkins in C$3.6 billion deal
6.39%Struggling apparel retailer Bebe to shut all stores
2.67%Honeywell profit beats as aerospace, energy businesses deliver
-2.38%AHEAD OF THE TAPE : General Electric Is Overdue for Good News -- WSJ
3.72%French stocks slip in flat European market as vote nears
Most Read News
04/22 MANCHESTER UNITED : face Celta Vigo, Ajax meet Lyon in last four
04/22 UNITED CONTINENTAL : American Airlines employee suspended after clash with traveller in San Francisco
04/22 RALPH LAUREN : to shut down Fifth Avenue Polo store
04/22 FICO ALGORITHM WORLD WONDER DAVID HOWE : One Installment and One Revolving Account with Low Utilization Most Optimal
04/22 HARMONIC : Brings Market-Leading Playout Capabilities to VOS™ Cloud and VOS 360 Solutions
Most recommended articles
04/21 TWENTY FIRST CENTURY FOX : Government extends period for regulators to report on Sky-Fox merger
04/17DJABBOTT LABORATORIES : Cyber Insurance Becomes a Must for More Manufacturers
04/22 Wall Street gears up for busiest earnings week in years
04/22DJNovartis Tests New Alzheimer's Drug on People Who Don't Have the Disease
04/22DJAT&T : Spotlight on AT&T's Media Strategy as Wireless Loses Luster