NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, December 1, 2016

Healthcare real estate investment trusts are becoming more attractive on the continent as African countries try to build up a listed real estate industry, according to Ortneil Kutama, media director of pan-African real estate industry news website, Africa Property News.

A real estate investment trust is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and timber lands. They can be publicly traded, or private.

REITs provide investors with an extremely liquid stake in real estate, receiving special tax considerations and typically offering high-dividend yields, according to Investopedia.

In more mature markets, healthcare REITs are often popular investments, Kutama said. “There is a gap for hospital services in Africa and property investors can benefit from this,” he said.