Don't let S-chip baggage cloud judgement of Chinese Reits

Instead of shutting them off, investors should take time to understand the trusts, their sponsors and their sectors

Published Tue, Jul 12, 2016 · 09:50 PM

SINGAPORE'S successful real estate investment trust market has caught the eye of asset-rich Chinese companies looking to spin off their assets into Reits. Among them is China's largest state-owned developer Greenland Group, which is said to be planning a Reit listing of six hotel assets worth S$1.5 billion.

If this materialises, Greenland's Reit listing will not only mark the start of its multi-billion dollar property fund platform, but also provide a textbook case for other Chinese developers with similar ambition.

But with more potential Reit listings with China-based assets underway, are investors here welcoming of this wave?

Understandably, memories of scandal-plagued S-chips are still lurking in the mind of investors. But at the same time, market players here have long been waiting for a revival of the initial public offering (IPO) mark…