Speakers from around the world converged at the Nedbank Corporate Property Finance sponsored inaugural SA REIT Conference in Sandton on 22 October 2014 to speak on corporate governance, funding trends and how to attract investors to REITs.
REITs are well positioned to undertake development projects because they can raise inexpensive money on the secondary market or borrow from lenders with confidence in their track records.
Many listed property companies are converting or considering converting to real estate investment trusts (REITs) in South Africa since the new tax regime for list REITs was enacted.
Private prisons are big business and two big players with facilities in South Africa, US, Australia and the UK have just undergone REIT conversion.
Three public REITs, with total market capitalization of $6.4 billion, focus on student housing. These REITs represent just 1.0% of the overall REIT industry.
Following trends in the US REIT market may just give you the edge here in South Africa as REITs begin to manifest.
The FTSE NAREIT ALL REIT Index returned 6.05%, outperforming the NASDAQ (+5.53). The US REIT sector has experienced steady and healthy growth.

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