Best Real Estate Investment Trust (REIT) in South Africa

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Real Estate Investment Trust helps you own shares of real estate property in South Africa that generates income for you.

A Real Estate Investment Trust (REIT) is a company that derives income from the ownership, trading, and development of income producing real estate assets. In South Africa, a REIT receives special tax considerations and offers investors exposure to real estate through shares listed on the Johannesburg Stock Exchange (JSE)

There are a couple of companies offering you the opportunity to invest in real estate through REIT.Here is a list of the top companies in South Africa:

JSE

JSE is one of the best companies to invest in when you want high returns for your investment. They provide you with an easy way to enter into the real estate market through their REIT.

Features

  • Must pay at least 75% of their taxable earnings available for distribution out to investors as dividends, giving investors certainty that net income will be paid out.
  • Earn their income from property leases, which means that they usually have a relatively stable income stream, which is adjusted upwards annually to keep pace with inflation.
  • Earn their income from commercial properties with long lease periods, which means that they usually have a relatively stable income stream, which is adjusted upwards annually to keep pace with inflation.
  • Are required to have a committee to monitor risk.
  • Investors may face some degree of risk because economic and social situations are unpredictable and may positively or negatively impact rental income and the price of REITs.
  • Foreign shareholders of SA REITs will be levied a dividend withholding tax from 1 January 2014. The current rate is 15%; or the applicable double tax agreement rate could apply.
  • Gives the property company enhanced tax efficiency as tax is payable by the end investor.​

Oasis Crescent International Property Equity Feeder Fund

Type: International Property Equity
Launch Date: 30 April 2007
Minimum Monthly Investment: R 500
Minimum Lump Sum Investment: R 2,000
Custodian: Standard Bank of South Africa Ltd.
Benchmark: CPI Rate of OECD countries + 3%

Accelerate Property Fund

Accelerate Property Fund is a listed Real Estate Investment Trust (REIT) offering investors the opportunity to share in a portfolio of well-established high-quality properties across South Africa.

ATTACQ

ATTACQ invests in malls and other property in South Africa. Investors are required to register and buy shares for the REIT.

Resilient REIT

Resilient has been listed on the JSE since 6 December 2002 and is a retail-focused Real Estate Investment Trust (“REIT”). Its strategy is to invest in dominant retail centres with a minimum of three anchor tenants and let predominantly to national retailers.

A core competency is the successful development of new shopping centres and the reconfiguration of existing shopping centres to adapt to changing market demands.

Resilient’s South African property portfolio consists of 27 retail centres covering a combined gross lettable area (“GLA”) of 1 153 267m2 and some land holdings. The Nigerian portfolio, with a total GLA of 29 726m2, includes three retail centres and the French portfolio, with a GLA of 147 383m2, consists of four retail centres.

Spear REIT Limited

Spear REIT investment portfolio is made up of 28 properties comprising a well-balanced mix of Industrial (56%), Commercial (32%), Retail (12%), real estate by gross lettable area (GLA).

The total gross lettable area of the portfolio is 443 155 m² which is let to 419 tenants divided into 37% A-grade, 55% B-grade, 2% C-grade tenants and 6% vacant ranging from JSE-listed entities to small or medium enterprises.

The geographically specialised portfolio gives Spear REIT the opportunity to focus on hands-on asset, tenant and portfolio management in the Western Cape. The portfolio presents stable income over the short, medium and long term with a number of redevelopment opportunities that will allow organic growth and increase of income in the portfolio.

Safari Investments

SAFARI Investments is a property investment company listed on the JSE as a Real Estate Investment Trust that specializes in quality commercial investments. Through selective investments in property they create value for all their stakeholders as they (Safari) strive for sustainable growth and earnings.

Portfolio Summary

  • Atlyn-Atteridgeville (Cnr Phudufufu and Khoza Street)
  • Mnandi-Atteridgeville (Maunde Street)
  • Denlyn-Mamelodi (Cnr Stormvoël and Maphalla Road)
  • Thabong -Sebokeng (Moshoeshoe Street)
  • The Victorian -Heidelberg (cnr Voortrekker and Jordaan Street)
  • Platz am Meer -Swakopmund, Namibia (cnr Albatros and Tsavorite Street)
  • Soweto Day Hospital -Soweto (R558, Protea Glen)
  • NkomoVillage -Atteridgeville (49 Tlou Street)
  • Thornhill Shopping Centre – Polokwane (Cnr Veldspaat and Munnik Avenue)

Octodec Investment Limited

Octodec, including its subsidiaries, is one of the largest property owners in the Tshwane and Johannesburg areas. We are proud of our diversified portfolio that consists of 267 properties valued at R11.3 billion.

The position of their residential, retail, commercial and specialised spaces in relation to each other in strategic CBD nodes delivers economies of scale and value for money to the company’s tenants.
Our portfolio, including a joint venture, has a lettable area of 1 632 836 m².

We are committed to delivering long-term stakeholder value through an innovative and visionary perspective on property investment.

Octodec has contracted City Property Administration to perform its asset and property management functions. Ovtodec manages its own resources and relationships in the inner city market through City Property’s asset and property management services. Thus, tenants engage with the City Property brand.

Their residential, retail, office and industrial portfolios offer our investors a diversified portfolio that consists of more than 260 properties.

Rebosis Property Fund

Rebosis Property Fund Ltd was established by the Billion Group in 2010 and on 17 May 2011 became the first black-managed and substantially black-held property fund to be listed on the JSE. On 24 July 2013, the Fund was approved as a Real Estate Investment Trust (REIT).

The Fund’s portfolio primarily consists of early stage, regionally dominant shopping centres and large, single-tenanted commercial offices in nodes attractive to the South African government providing a sovereign underpin.

JSE main board listed Rebosis Property Fund provides investors with access to an R17.5bn portfolio of predominantly large, defensive retail malls located in key economic nodes across South Africa.

Despite its considerable size, Rebosis’ portfolio consists of 43 properties currently, allowing for focused approach when it comes to cost savings initiatives, tenant optimisation and lease renewals, improving the overall quality of the Fund.

SA Corporate Real Estate

Portfolio Attributes

• A defensive retail portfolio specialising in convenience (which includes storage facilities)

• A “best-in-class” residential rental portfolio (Afhco)

• A quality industrial portfolio primarily comprising logistics

• A minor office portfolio which is being divested from

• A JV in primarily retail properties in Zambia

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