The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

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.

REITs are designed to yield a steady and predictable revenue stream. "REITs are simply the best way of owning mature, income-producing real estate," says Matthew Whittell, director of equity capital markets at Citigroup in Singapore. "It's the closest thing you can get to owning the property itself."

Specialist companies, often owned by the original sellers of the properties, manage the portfolio according to strict guidelines that enable a REIT to benefit from tax breaks, essentially relief from corporation tax. REITs offer property companies a chance to offload mature investment properties and release valuable capital that can then be recycled into new projects that offer a higher potential return.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree