No rush for African REITs

Most African countries have not yet become a big enough listed market to sustain a Reit structure. The African property funds not only need scale but also transparency in terms of their accounting practices and corporate governance

It could take years before there are Real Estate Investment Trusts (REITs) in African countries other than South Africa.

But the wait will be worth it as the continent offers strong future GDP growth supported by a large population, untapped resources and growing wealth.

The growth of REITs could help African nations harness the opportunity that the market offers and increase accessibility of long term funds for developers on the continent, reports Ortneil Kutama, Africa Property News Media Director.

One country which is standing out as a potential destination for REITs is Kenya. The East African country will become the second African country to gain REITs status by 2016, according to authorities.

The SA Reit Association say that first there must be a larger listed property market in African countries such as Nigeria before there can be other Reit structures.

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