Real Estate Investor Magazine South Africa September 2015 | Page 43

REI COMMERCIAL

REITS NOW OUTWEIGH RETAILERS
AND HOSPITALITY ON THE JSE

L

isted REITs (real estate investment trusts) have become
an increasingly important force in the South African
economy. Today REITs listed on the JSE comprise 5.8%
of the FTSE/JSE All Share Index, making it a bigger sector
than retailers at 5.7% and healthcare 3.9%. This includes South
African and non-South African JSE-listed REITs.
Over the past year the market capitalisation of SA REITs has
increased around 43%, to around R340 billion.
The REIT sector has etched out an impressive growth
trajectory, with its defensive investment qualities, solid track
record of performance and drive for international best practice.
According to Ian Anderson, Chief Investment Officer of
Grindrod Asset Management, the listed REIT sector raised
about R25 billion in net equity over the past year.
Anderson notes the monthly value traded in listed REITs
averaged R10.3 billion over the last 12 months. This is a 25%
increase over the preceding 12-month period and 220% higher
than five years ago. “The average monthly trade was recently
boosted after several SA REITs were included in global equity
indices for the first time,” says Anderson.

Ask someone with experience for advice
I find that once I have locked a property up under due diligence,
asking for advice can be a great help. The investors in this
industry are generally eager to assist and it gives a completely
different perspective on the property from people with a wealth
of experience and knowledge. Often they will have ideas that
you perhaps hadn’t seen which could unlock unrealised future
value.

Enquiry into Tongaat mall collap
The Department of Labour’s commison of enquiry into the
cause of the partial collapse of the Tongaat Mall has ended. Now,
it will send ]