Norbert Sasse, who is executive director of property loan stock giant Growthpoint Properties, was appointed chairman of the new Property Loan Stock Association. He said the body aimed to raise the profile of listed property as an asset class, with particular reference to property loan stocks.

The property unit trust sector on the JSE Securities Exchange SA has its own umbrella body the Association of Property Unit Trusts.

However, Sasse said yesterday there were particular issues facing the property loan stock sector that were not applicable to property unit trusts, such as the capital gains tax. Property unit trusts do not pay capital gains tax on the sale of a building.

The Collective Investment Schemes Control Act exempts them from this tax.

Property loan stocks, however, pay CGT on the profits when buildings are sold.

Andisa Securities property analyst Len v an Niekerk said the establishment of the body was good news, but was "surprised" that the property loan stock sector did not have one already.

Van Niekerk said if the association marketed itself correctly, it could raise the profile of property loan stocks as investment vehicles.

The new association intends engaging with bodies such as the Competition Commission, and wants to standardise accounting within the industry to make it more investor friendly.