Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

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
React to this article
Latest news
Date Title
05:12a BLACKROCK : GLID Wind Farms acquired by the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock
05:12a SCHRODERS : Schroder Real Estate completes second Regional Office Property Unit Trust acquisition
05:12a SBERBANK ROSSII PAO : The Central Bank of the Russian Federation (Bank of Russia)-On assessing Sberbank payment system
05:12a ALLIANZ SE : Storm and flood advice
05:12a SUZUKI : Summary of Business Results for the Second Quarter Ended December 31, 2015 (Consolidated)
05:12a MATAS A/S : Transactions under share buyback programme
05:12a RHA ROAD HAULAGE ASSOCIATION : Forth Road Bridge Continues To Cause Financial Misery for Hauliers
05:12a EUROSTAT EUROPEAN UNION STATISTICAL OFFICE : 1 out of 4 internet users in the EU experienced security related problems in 2015
05:12a EEX EUROPEAN ENERGY EXCHANGE : Auction News: EU Auction
Latest news
Hot News 
UBS : Offers Two Innovative Australian ETFs Based on Morningstar Indexes
PURICORE : Strategic Review and Trading Update
ALECTO MINERALS : Strikes Deal To Develop Kossanto West Project With Randgold
ACTIVE ENERGY : AEG CoalSwitch Intl. Reveal Event & Developments
ISAGRO : It is opinion of the Company that the current sotck prices do not reflect the value of the Group
Most Read News
12:03a Venture Global Calcasieu Pass and Shell LNG North America Execute Twenty Year LNG Sales and Purchase Agreement
12:04a MINISTRY OF PETROLEUM AND NATURAL GAS OF REPUB : Global Crude oil price of Indian Basket was US$ 31.06 per bbl on 05.02.2016
12:02a Gerald Metals SA and Shanghai Pengxin Mining Investment Co., Ltd. Enter into Long-Term Joint Venture Agreement to supply and market Copper and Cobalt
02/07DJSuper Bowl TV Ads Bring Lighter Tone--
Most recommended articles
05:06a Dollar back on defensive as stocks head lower
05:04a Weak UK tax revenue could thwart Osborne's surplus aim, thinktank says
05:01aDJAsian Rubber Futures End Lower on Light Volumes
05:00aDJCHEVRON : Qatar Buys 30% Stake in Moroccan Offshore Blocks from Chevron
04:48a Segro twins homes with industry to tackle London housing squeeze