Singapore Exchange can offer diversity as other exchanges enter Reit game

WITH the recent launches of real estate investment trust (Reit) regimes in the Philippines and India, and with China slated to launch its own pilot programme for Reits at the end of this year, Singapore may have to work harder to attract regional Reit listings. But there are also hurdles for these alternative listing venues to cross.

In China the outstanding challenges include the reform on land tax regulations and implementation steps for Reits, said Teh Seng Leong, who leads the global real estate, hospitality and construction mergers and acquisitions practice at EY.

Sigrid Zialcita, CEO of the Asia Pacific Real Estate Association (Aprea), said China's Reit pilot will be structured as a mutual fund investing in asset-backed securities. "In its initial iteration, it will mostly comprise infrastructure assets. While the structure differs from conventional Reits in established markets like Singapore's, it allows Reit-like products to be listed within the current regulations surrounding trust products."