The standard and internationally recognised structure for a property investment company. REITs (pronounced “reet”) came into effect in South Africa from the beginning of 2012. These are listed property investment vehicles, which own or operate income generating property. REITs offer individual private investors the chance to benefit from income generated through property without having to actually buy and manage commercial real estate. REITS are publicly traded on the JSE REIT board and must comply with the following prerequisites:

A REIT is exempt from securities transfer tax and capital gains tax (CGT) in the case of disposal of immovable property, shares in other REITs or shares in a controlled property company. Of course, the investor will pay CGT when selling their REIT shares, as is the case with shares.

In summary, a REIT provides direct exposure to a multitude of expertly managed properties with growing and stable income streams.

To read more refer to the following JSE document – https://www.jse.co.za/content/JSEPresentationItems/REITs.pdf

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