PLSA continues to lead the successful transition to a REIT structure in South Africa

The South African listed property sector will be able to use the term South African Real Estate Investment Trust (SA REIT) without any confusion as a result of successful lobbying by the Property Loan Stock Association (PLSA).

Following requests by the PLSA, a company which listed on the JSE in October 2007 as “SA REIT” will change its name to Ingenuity Property Investments Limited.

“We are pleased to report that the entire sector, rather than a single entity can claim the name SA REIT when this new structure is introduced in South Africa,” says PLSA Chairman Norbert Sasse.

A REIT is a standard investment structure with which the international investment community is familiar. The REIT structure was initiated in the US in 1961 and has been adopted by the UK, Australia, France, Canada, Japan, Singapore and The Netherlands amongst other countries.

In 2006 the PLSA, which is the appointed representative umbrella body of all the property loan stock companies on the JSE-Limited comprised of voluntary members with the weight of nearly all the PLS companies within the sector behind it, set the wheels in motion for a best-of-breed REIT structure to be introduced in South Africa.

The PLSA has actively engaged with government, including stakeholders such as National Treasury and SARS on behalf of the South African listed property sector. Discussions have been ongoing and, Sasse reports, good headway has been made in the process of introducing a REIT structure for South Africa.

Sasse explains that the introduction of REITs locally will bring the SA listed property sector in line with international investment trends.

“We are very appreciative that SA REIT has agreed to change its name which will prevent any confusion in the mind of the public,” he said.