Guideliness will open a hitherto closed market, and provide developers/property market, another pool of money (IPO's, off-shore structures, and P/Es, were a rage in 2007).
- Structure - set-up under local laws; managed by a real estate investment management company
- Funds - close ended, listed on stock exchanges with valuations done by independent principal valuers disclosed annually
- Dividend distribution - not-less than 90% of post tax profits
- Issues - No clarity on taxation for REIT's or investors - this is key to the viability of these structures, and needs to be addressed.
- Non-income producing/under-development asset: Capped at 20%
- single Asset exposure: 15% cap
- Developer exposure/concentration: restricted at25% for projects developed/marketed/financed by a developer group
- Leverage: Capped at 20% of total gross assets
- Restrictions: Cannot invest in land/participate in development activities.
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