Singapore 19 Oct 2020 – The securitization of real estate assets into REITs is gaining traction in the region. While most of the region’s developed markets have established REIT markets, a crucial missing dynamic has been the glaring absence of REITS in the region’s fast-growing, emerging economies. This has begun to change in the last two years.
India’s success in reforming its regulatory framework that paved the way for its first REIT in 2019 adds a significant market to the region; this was followed with a maiden listing in the Philippine stock exchange this year. The launch of REIT infrastructure trusts in China is a big win for the region and a historic achievement as it continues to promulgate the framework and sustain the REIT movement in the Asia Pacific.
“Establishing the REIT code in those markets remains indispensable in fueling the sustained rise of the asset class in the region and propel it to its next phases of growth in the region,” said Sigrid Zialcita, CEO, APREA.
As a nod to this significant milestone, APREA, in the latest issue of Knowledge Brief, invited several prominent real estate leaders across Asia Pacific to share their insights on the region’s property markets, its newest REIT regimes as well as the opportunities and challenges in the next phase of the recovery.
“These think pieces are part of APREA’s continued effort to highlight the diverse voices in the real estate industry and various insights to enable a deeper understanding of REITs as an investment vehicle,” said Miss Zialcita.
In addition, the post-pandemic environment will induce a rise in opportunistic investments involving debt and repositioning strategies. The publication, aptly themed Are REITs Better Asset Managers? will also explore the relevance of asset management concepts to physically enhance assets to raise tenant stickiness and maintain valuations. Consequently, this encourages the development and adoption of international best practices to meet expected standards of asset management and transparency.
“The region’s REIT revolution remains far from over even as it continues to deepen to include diversified slices of the real estate market in order to capture the wider growth dynamics in the region. As better asset managers, REITs can be crucial, in the wake of the pandemic, to raising the standards of infection prevention, health and wellness in the region’s properties and infrastructure,” added Miss Zialcita.
To download the publication please visit: https://knowledgebrief.aprea.asia/
