"The booming real estate industry and the international expansion of activity by many developers contributed significantly to the market caps of these companies and brought new large real estate companies to the TASE," says TASE Economic Department senior VP Ronit Harel Ben-Ze'ev.
The Real Estate 15 index of the Tel Aviv Stock Exchange (TASE) had a yield of just 2% in 2007, rising from 650 points to 660, after outperforming the TASE's leading indices in the first two years after its launch in January 2005. The Real Estate 15 index was highly liquid and a popular investment instrument.
"Globes": Does the TASE plan to launch new real estate indices anytime soon, such as an index for companies whose core business is in Israel?
Harel Ben-Ze'ev: "The Real Estate 15 index includes the largest companies in the sector; therein lies its importance. The index therefore serves as a basic asset for financial products. We have no plans to launch more real estate indices in the near future, because most of the public real estate companies operate both domestically and internationally."
Are you trying to promote the REIT law, which is intended to add an especially interesting aspect to the interrelationship between the capital and the real estate markets?
"One only REIT has been floated on the TASE to date (Excellence Investments Ltd. (TASE: EXCE) subsidiary REIT 1 Ltd. (TASE:RIT1) - R.M.). To the best of my knowledge, an amendment to the income tax code is expected, which will encourage current companies with real estate activity to float REITS. We hope that when the amendment is enacted, we'll see more REITS floated. The TASE has adapted its registration regulations to facilitate the flotation of REITs."
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2007
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