REITs South Africa Platform set to provide Investors with real time comparative analysis

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The REITs South Africa platform is a simple portal to all the main publicly listed real estate opportunities. The REITs South Africa platform is a simple portal to all the main publicly listed real estate opportunities.

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REITs South Africa, a new web portal set to publicise listed real estate opportunities and connects investors with real time comparative analysis for the property investment industry in SA will be launching on the 1st of April 2013 when the REITs change over occurs.

In July 2012, South Africa's National Treasury released various draft taxation amendments. The real estate industry stands to significantly and positively benefit from this.

The international investment benchmark mechanism for Real Estate investment is the REITS structure. As a result of this tax revision, the way is open for REITs' structures to be put in place locally. This structure will standardise the different current investment models (PUTs and PLSs) listed on the JSE Real Estate sector. With the benefit of hindsight, the best aspects of this structure, established and refined internationally, will become the South African standard.

This real estate investment vehicle will therefore become the best and simplest portal to real estate investment locally and by international companies wanting to invest locally. This is as well as giving new exposure to international real estate investment opportunities by local investors. The benefits to those investors requiring a steady annuity income stream will be the tax certainty of the returns generated as well as equivalent comparability. Returns generated locally often outperform deposit rates with the added benefit of a generally appreciating equity value, giving total returns of 30% to 38% in 2012 with potential returns of 14% to 25% in 2013. Comparatively this makes the local market highly attractive to foreign investment. With the adoption of internationally accepted standards it will open the local market up to further international investors. This may well drive the local market higher than current projections.

The Reits companies will themselves have further benefits under the new regulations such as higher levels of gearing at a 60% acceptable maximum, flexible management structures both internal and external and a broader scope of investment options such as other local or international real estate investment companies. This is all so long as the company derives its income predominantly from immovable property. These aspects will all be overseen by the JSE.

For investors, there is certainty in that virtually all net income is paid out and that tax exposure is determined only by the tax status of the recipient. International comparison of performance is then more easily made and the investor is protected within an internationally defined and regulated industry, whose performance playing field is more uniform and easily identified.

The REITs South Africa platform is a simple portal to all the main publicly listed real estate opportunities. The biggest difficulty for investors today is having real time comparative analysis of all the opportunities facing them. For the first time all investment in real estate is made accessible in a manner that allows informed decision making. It also allows the investor to more easily select a range of investments, e.g. investing in real estate in an emerging high growth market and the potential to partly hedge this with exposure in developed countries.

This resource allows the most informed decision making to take place for real estate in the world. All now, all real -time, to provide excellent informed investment decisions.

The portal presents all the relevant property funds involved in the sector and includes each fund’s share and market information and pertinent reports.

Information displayed will be updated at 15 minute intervals and REITs South Africa forms part of the global REITs Online resource which provides REIT information, in a standardised format for the following countries:

  • USA
  • Australia
  • France
  • UK
  • Japan
  • Singapore
  • Canada
  • South Africa

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Property Investment in South Africa  |  Real Estate Investment Trusts (REITs)
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