The emergence of REITs in Ghana

Swanzy-Impraim, S; Ge, XJ; Mangioni, V

The emergence of REITs in Ghana

Swanzy-Impraim, S Ge, XJ Mangioni, V

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Publisher:: Pacific Rim Real Estae Society
Publication Type:: Conference Proceeding
Citation:: 28th Annual Pacific Rim Real Estate Society Conference, 2022
Issue Date:: 2022-01-19

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Field	Value	Language
dc.contributor.author	Swanzy-Impraim, S
dc.contributor.author	Ge, XJ
dc.contributor.author	Mangioni, V
dc.date	2022-01-19
dc.date.accessioned	2022-01-21T02:51:21Z
dc.date.available	2021-11-18
dc.date.available	2022-01-21T02:51:21Z
dc.date.issued	2022-01-19
dc.identifier.citation	28th Annual Pacific Rim Real Estate Society Conference, 2022
dc.identifier.uri	http://hdl.handle.net/10453/153402
dc.description.abstract	Real estate investment trusts (REITs) are evolving in Ghana’s real estate market. As at mid-2021, Republic Bank and GCB Securities were the two publicly known institutions operating REITs in the country. With the passage of the 2019 REIT guidelines, all existing REITs were rendered invalid, pursuant to provisions that, REITs must be approved by the Securities and Exchange Commission of Ghana. Using exploratory qualitative methods, the study investigates on-going developments surrounding the formulation of REITs in Ghana. Interviews were conducted with institutional investors and policy experts on their perception on the new REIT guidelines and the conditionalities needed for developing a REIT sector in Ghana. Institutional investors were largely receptive of the new REIT guidelines but at the same time not enthusiastic about venturing into it. They exclaimed that, unless REIT yields are proven to be competitive against their existing assets, they may not consider it in the short term. To develop Ghana’s first REIT sector, there are three conditions to be met, namely, creating a conducive macroeconomic environment, improving the state of the real estate industry, and developing an effective legal and regulatory framework. The study concludes that, there is a market for REITs in Ghana to serve institutional investors such as pension funds, insurance companies, private equity funds etc. However, the right structures must be created to usher in more advanced forms of indirect real estate investments. Additionally, real estate companies must be encouraged to trade publicly on the Ghana Stock Exchange once the opportunity presents itself, to expand their financing options. The implementation of the REIT guideline is a major milestone towards negotiating, establishing, and operating REITs in Ghana.
dc.language	en
dc.publisher	Pacific Rim Real Estae Society
dc.relation.ispartof	28th Annual Pacific Rim Real Estate Society Conference
dc.relation.ispartof	28th Annual Pacific Rim Real Estate Society Conference
dc.relation.ispartofseries	28th Annual Pacific Rim Real Estate Society Conference
dc.rights	info:eu-repo/semantics/openAccess
dc.title	The emergence of REITs in Ghana
dc.type	Conference Proceeding
utslib.location.activity	Virtual
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
utslib.copyright.status	open_access	*
pubs.consider-herdc	true
dc.date.updated	2022-01-21T02:51:18Z
pubs.finish-date	2022-01-19
pubs.place-of-publication	Online
pubs.publication-status	Accepted
pubs.start-date	2022-01-19
dc.location	Online

Abstract:

Real estate investment trusts (REITs) are evolving in Ghana’s real estate market. As at mid-2021, Republic Bank and GCB Securities were the two publicly known institutions operating REITs in the country. With the passage of the 2019 REIT guidelines, all existing REITs were rendered invalid, pursuant to provisions that, REITs must be approved by the Securities and Exchange Commission of Ghana. Using exploratory qualitative methods, the study investigates on-going developments surrounding the formulation of REITs in Ghana. Interviews were conducted with institutional investors and policy experts on their perception on the new REIT guidelines and the conditionalities needed for developing a REIT sector in Ghana. Institutional investors were largely receptive of the new REIT guidelines but at the same time not enthusiastic about venturing into it. They exclaimed that, unless REIT yields are proven to be competitive against their existing assets, they may not consider it in the short term. To develop Ghana’s first REIT sector, there are three conditions to be met, namely, creating a conducive macroeconomic environment, improving the state of the real estate industry, and developing an effective legal and regulatory framework. The study concludes that, there is a market for REITs in Ghana to serve institutional investors such as pension funds, insurance companies, private equity funds etc. However, the right structures must be created to usher in more advanced forms of indirect real estate investments. Additionally, real estate companies must be encouraged to trade publicly on the Ghana Stock Exchange once the opportunity presents itself, to expand their financing options. The implementation of the REIT guideline is a major milestone towards negotiating, establishing, and operating REITs in Ghana.

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http://hdl.handle.net/10453/153402