A Strategic Investment Opportunity with Global Implications
A major shift in the real estate investment landscape is taking place. Supermarket Income REIT (SUPR), a UK-based investment trust specializing in grocery-anchored real estate, has secured a secondary listing on the Johannesburg Stock Exchange (JSE). This move opens doors for South African and global investors to participate in one of the most stable and inflation-protected asset classes: grocery retail infrastructure.
For institutional investors, asset managers, and custodians, this listing presents a unique opportunity to diversify portfolios with a high-yielding, long-term income-producing asset. But it also raises a critical question—what does this mean for dividend taxation and withholding tax recovery?
Why This Listing Matters for Financial Professionals
Supermarket Income REIT – A Resilient Asset in a Volatile Market
SUPR invests in omnichannel supermarket properties across the UK and Europe, partnering with leading brands like Tesco, Sainsbury’s, Waitrose, and Marks & Spencer. As a defensive real estate sector, grocery retail has proven to be resilient through economic cycles, including inflationary periods and recessions.
With a portfolio of over 100 supermarkets valued at £1.78 billion, SUPR offers a secure, inflation-linked income stream—an attractive proposition for investors looking to hedge against volatility.
A JSE Listing Designed to Attract Global Capital
SUPR’s secondary listing on the JSE is strategically designed to increase liquidity, diversify its investor base, and enhance global visibility. The JSE, with a market capitalization exceeding R19.6 trillion, has seen an influx of international listings, reinforcing its position as a gateway for cross-border investments.
For South African investors, the listing provides direct exposure to the European real estate sector without requiring offshore allocation approvals. However, there are tax implications that should not be overlooked—especially regarding withholding tax on dividends.
How Withholding Tax Impacts Institutional Investors and Asset Managers
February Dividend Already Paid—What Investors Need to Know
SUPR declared a Second Quarterly Dividend of 1.53 pence per share, which was paid on 28 February 2025 as a Property Income Distribution (PID).
For South African shareholders, this dividend was:
- Paid in ZAR (South African Rand) at an exchange rate of 22.7391 ZAR to 1.00 GBP, resulting in a gross dividend of 34.79082 ZAR cents per share.
- Subject to UK and South African withholding tax regulations.
Tax Implications for SA Shareholders
- 20% UK withholding tax was deducted (resulting in a net dividend of 27.83266 ZAR cents per share before SA tax).
- An additional 5% SA dividends tax was applied for qualifying SA tax residents, reducing the final dividend to 26.09312 ZAR cents per share.
- SA shareholders may claim back 5% from His Majesty’s Revenue & Customs (HMRC) under the UK-South Africa double tax agreement (DTA).
While dividends are a key benefit of investing in REITs, many institutional investors fail to recover excess withholding tax, leading to significant tax leakage.
Action: Optimizing Tax Efficiency on SUPR Dividends
Steps for Investors, Fund Managers, and Custodians
- Assess Your Withholding Tax Liability – Identify the applicable tax rates based on your residency and tax treaties.
- Determine Eligibility for Refunds – Many institutional investors qualify for reduced withholding tax rates under double taxation agreements.
- File Refund Claims Efficiently – Work with specialized tax recovery firms like Global Tax Recovery to streamline the process and ensure compliance.
- Monitor Future Dividends – Keep track of SUPR’s dividend payments and tax implications to optimize future income.
Conclusion: A Smart Investment with a Strategic Tax Approach
SUPR’s JSE listing is a golden opportunity for South African and global investors to gain exposure to a defensive real estate asset class. However, the true financial benefit lies in effective withholding tax recovery.
If you’re an asset manager, financial institution, or global investor, now is the time to review your tax strategy and ensure you’re not leaving money on the table.
If you’re managing institutional portfolios, pension funds, or trust assets, ensuring tax-efficient dividend recovery is crucial. Global Tax Recovery specializes in helping investors maximize their net yield by navigating withholding tax reclaim processes efficiently.
Contact Global Tax Recovery today to safeguard your dividend income and enhance investment returns.