Real Estate Investor Magazine South Africa April 2015 | Page 43

REI COMMERCIAL
Unlisted funds can now enjoy REIT status

S

outh Africa’s commercial real estate sector
has welcomed the announcement that
National Treasury is extending South Africa’s
Real Estate Investment Trust (REIT) dispensation
to unlisted property companies.
Impacting every man in the street through
their pension savings, there are billions of Rands
of property investments in South Africa’s unlisted
property vehicles that can be impacted by the REIT
dispensation, which, if extended to the unlisted
property sector, will prevent tax leakage from
pension, and savings vehicles.
Pareto Properties, as an unlisted property company, welcomes the news of
Government’s proposal that unlisted property owning companies must qualify for the
same tax treatment as listed Real Estate Investment Trusts (REITs), if they become
regulated.
This is positive for the property industry. Many unlisted property companies are
already well regulated with excellent standards of governance. The introduction of
more formal regulation for the industry, which supports entrepreneurship and growth,
gives investors greater confidence in our sector, and prevents unscrupulous operators
from tarnishing its good reputation.
The 2015 National Budget Review Annexure C - Additional Tax Amendments states:
“In 2012, a special tax dispensation for listed REITS was introduced in the Income
Tax Act... Unlisted property companies marketed to the general public or held by
institutional investors do not qualify for the same special tax dispensation as listed
real estate investment trusts. Government proposes that unlisted property-owning
companies must qualify for the same tax treatment if they become regulated. A
regulatory framework for unlisted property-owning companies will be developed.”
Nathi Manzana
Head of Professional and Technical Services
Standard Bank

Standard Bank is committed to sustainable business.
Our new Rosebank office complex was completed in
2013 and accommodates around 4 500 employees
in customer-facing operations. It has achieved a
five-Green Star Design office v1 rating by the Green
Building Council of South Africa (GBCSA) and a fiveGreen Star as a built office v1 rating.
Robin Lockhart-Ross
Executive Head
Nedbank Property Finance

The Existing Building Performance (EBP) tool
illustrates the value-add for owners and investors
of commercial property. It is expected to return
environmental and financial savings for property
owners who use it to incorporate green features in
their existing buildings, whether this be to increase
energy efficiency, improve design elements or
educate tenants.
www.reimag.co.za

Expert Q&A
New light
industrial park

Beston Silungwe
Executive
Ithala Development
Finance Corporation Limited
Q What is Ithala’s latest edition to
it’s property portfolio?

Paramount Park is the latest addition to
Ithala’s diverse property portfolio that has
been developed over a number of decades.
Ithala is a pioneer in establishing shopping
centres and industrial estates in remote
regions of KwaZulu-Natal and seeks to
bring development and retail facilities to
communities, thereby accelerating regional
spatial equity, economic growth and
promoting job creation.
Q Where is this new development?

Paramount Park is situated in the Mount
Edgecombe business district, close to
Umhlanga Ridge, Gateway node and
the Mount Edgecombe Country Club and
residential estate. It is accessed via the
R102 and the M41 main arterial routes,
with King Shaka International Airport only
18, 5 km North.
Q What is the impact this geenfield
project will have on the
environment?

This development was designed and
constructed in a way that will conserve
the green belt area located alongside
the property. It was retained to provide
a peaceful and natural outlook from
the units. It will will continue to provide
sustenance to the small wildlife and birds in
the area. Alien plants have been removed
to safeguard the indigenous vegetation that
remains.
Q What is the size of the
development?

The industrial park comprises of a total of 7
899 m2, with individual floor areas divided
into 20 units ranging from 296 m2 to 391
m2. The design reflects a typical multi-unit
complex, with each unit comprising of a
production facility, ablutions, kitchenette
and small universal mezzanine area, and
allows for the combining of units.
April 2015 SA Real Estate Investor

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