Kudos to MAS for light touch on Reit governance

REAL estate investment trust managers heaved a sigh of relief when the Monetary Authority of Singapore (MAS) unveiled its finalised list of rules governing the Reit sector.

Following discussions with and feedback from the sector, the central bank opted for a light touch approach to give the 13-year-old Singapore Reit (S-Reit) market flexibility to grow.

Among the noteworthy MAS initiatives is its dropping of a proposal to replace fees paid to Reit managers relating to acquisition and divestment of properties with one that basically covers just their costs. It also decided not to pursue operational restrictions on stapled Reits and not to regulate income support arrangements more strictly. In return, it asked for better disclosures.