REITs hit the streets

Recent IPOs show that that property investment vehicles known as REITs, popular in western markets, might be gaining a foothold in Asia. If REITs win mainstream acceptance they could change the landscape of Asia's markets, offering extra flexibility to property companies and steady yields to investors. Chris Leahy reports.

ASIA HAS THE makings of a new investment favourite in REITs (real estate investment trusts). The launch of two recent REIT IPOs – one in Singapore, one in Hong Kong – have proved immensely popular and could herald the start of a new asset class for the region’s yield-hungry investors.

As the name suggests, a REIT is an investment vehicle created specifically to hold a portfolio of properties, typically of the same class, the income from which is paid out to investors, normally in its entirety.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access