The organisation was commenting after the Reits conference held in Sandton last month by the Property Loan Stock Association. Reits are internationally recognised, with the biggest market being the US.

The Property Loan Stock Association wants property unit trusts and property loan stocks to adopt Reits to attract international investment.

Sapoa board member Musa Ngcobo says it is "clear" that if listed property companies want to remain relevant and be recognised as members of the global economy, they have to fall in line with international standard structures. He says Sapoa welcomes the "constructive interaction established by this strategic conference".

He says while the change in structure will make local listed property companies accessible to international investors, the change will also "consider unique local objects such as the democratisation of property ownership and meeting government objects", including black economic empowerment.

Alex Phakathi, president of Sapoa, says the conference was "timely" and "useful" to get a better understanding of property loan stocks and introduce stimulating debate on Reits as an investment vehicle in SA.