Author Topic: Offshore property exposure  (Read 4713 times)

macleanian

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Offshore property exposure
« on: January 14, 2016, 08:04:52 am »
Have been looking to gain some exposure to offshore property, and have been considering New Europe, RockCastle and Fortress Income fund. I know that they've run hard, but based on fundamentals, does anyone have comments on the above or other suggestions I should be looking at? :)

BussoV6

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Re: Offshore property exposure
« Reply #1 on: January 14, 2016, 08:27:31 am »
I put some money into Sirius Real Estate on the JSE about a year ago. Been solid so far with mainly commercial/industrial property in Germany.

Moonraker

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Re: Offshore property exposure
« Reply #2 on: January 14, 2016, 08:36:59 am »
Sirius Property: Sirius leads the pack
NEPI  (Eastern Europe where mall 'culture' is only in the beginning stages)

Both can borrow at very low interest rates 2% into properties yielding over 8%.

Prefer them to CCO or IAPF




TheKwok

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Re: Offshore property exposure
« Reply #3 on: January 14, 2016, 08:37:43 am »
I like Rockcastle - done well for me so far.
Just something to consider is if the structure of the company is a REIT or not - If it's a REIT then the dividends they pay are treated as income (well local ones anyway - pretty sure international ones would be the same)

Moonraker

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Re: Offshore property exposure
« Reply #4 on: January 14, 2016, 08:48:12 am »
I like Rockcastle - done well for me so far.
Just something to consider is if the structure of the company is a REIT or not - If it's a REIT then the dividends they pay are treated as income (well local ones anyway - pretty sure international ones would be the same)

No, all those mentioned here are treated by SARS as local dividends despite being foreign, because they have an inward (secondary) listing on the JSE.
So, you only pay the 15% dividends tax.

Fawkes85

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Re: Offshore property exposure
« Reply #5 on: January 14, 2016, 09:49:48 am »
No, all those mentioned here are treated by SARS as local dividends despite being foreign, because they have an inward (secondary) listing on the JSE.
So, you only pay the 15% dividends tax.

So only local REITs get taxed as income?

macleanian

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Re: Offshore property exposure
« Reply #6 on: January 14, 2016, 10:08:53 am »
So very broadly, If choosing between Sirius and NEPO, you'd be choosing between Germany and Eastern Europe?  For the majority of your exposure?

Moonraker

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Re: Offshore property exposure
« Reply #7 on: January 14, 2016, 10:44:27 am »
So very broadly, If choosing between Sirius and NEPO, you'd be choosing between Germany and Eastern Europe?  For the majority of your exposure?

Yes, NEPI is currently focused on Romania, but also Slovakia and a little in Serbia. 
Sirius is only Germany.

@Fawkes85   Yes, local Reits are taxed as income. (No withholding tax payable).
« Last Edit: January 14, 2016, 10:48:07 am by Moonraker »

BussoV6

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Re: Offshore property exposure
« Reply #8 on: January 14, 2016, 05:26:03 pm »
I'm thinking of putting a few bucks in INTU properties. They are mainly commercial landlords in UK. Also JSE listed.

Moonraker

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Re: Offshore property exposure
« Reply #9 on: January 14, 2016, 06:02:07 pm »
I'm thinking of putting a few bucks in INTU properties. They are mainly commercial landlords in UK. Also JSE listed.

Watch out for Brexit jitters - may cause to drop.

Moonraker

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Re: Offshore property exposure
« Reply #10 on: January 14, 2016, 07:42:12 pm »
I'm thinking of putting a few bucks in INTU properties. They are mainly commercial landlords in UK. Also JSE listed.

Watch out for Brexit jitters - may cause to drop.

That's what I mean: Growing Minority Sees British Pound Heading to Level of Thatcher Era

Rand hedge cred might not be as good as € or $...... on the other hand interest rates are said to stay lower for longer. Brexit is the big unknown.


Mr_Dividend

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Re: Offshore property exposure
« Reply #11 on: January 14, 2016, 08:33:25 pm »
Sirius vs Nepi also add the first is light, short let commercial, the second is retail. Plus one is in a developed country the other is in developing countries. That said, if in doubt, buy both.

INTU is also spreading it's retail dominent foot print into Spain and owns a couple of huge one's there - might be a good recovery play.

Fawkes85

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Re: Offshore property exposure
« Reply #12 on: January 15, 2016, 05:32:49 am »

macleanian

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Re: Offshore property exposure
« Reply #13 on: January 15, 2016, 03:05:48 pm »
Thanks Fawkes, saw this article earlier, what are the chances? xD I was basically trying to decide between Nepi and Sirius, think I'm going to get into Nepi after reading a bit more today, I like the fact that they have gotten the jumpstart on the retail centres and can possibly repeat ths in neighbouring countries. Such a hard choice, almost just flipped a coin  :))

Immobilier

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Re: Offshore property exposure
« Reply #14 on: January 15, 2016, 08:10:20 pm »
Buying FFB here.