The Securities and Futures Commission (SFC) has announced a two-month consultation on proposals to amend the REIT Code to provide Hong Kong REITs with more flexibility in making investments. The proposed amendments include allowing REIT to invest in minority-owned properties and in property development projects in excess of the existing limit of 10% of gross asset value (GAV) subject to unitholders’ approval, as well as increasing the borrowing limit for REITs from 45% to 50% of GAV.
This amendment will be more conducive to the long-term development of Hong Kong REITs, and attract more potential REIT listings in Hong Kong.
APREA supports this enhancement to the Hong Kong REIT Code aimed at sustaining the long-term growth of the Hong Kong REIT market.
The details of the consultation paper:
