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 Cookiesbefore 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.

Asia-Pacific: Australia offers a glimpse of the future

The issuers and investors building nascent Reit markets from Hong Kong to London must pause occasionally to picture what these new markets might look like in the future. What sort of issuance, innovation, consolidation and retraction might they see in the years ahead? Australia could have some of the answers. Chris Wright reports.

Euromoney Liquid real estate March 2007 

The Australian listed property trust (LPT) market – LPTs are not, strictly speaking, Reits, although the differences are subtle – is one of the most sophisticated listed property markets in the world. Bankers say that as much as 80% of suitable property in Australia is already securitized. It presents a useful case study in how such a market evolves over time. "We believe there is a Reit lifecycle," says Simon Jones, co-head of real estate capital at Macquarie Bank.

The Australian LPT market kicked off in the 1980s with the sort of structure typical of later Reit markets. They were listed, closed-end funds, paying out 100% of their taxable income in yield. Since their inception they have been a favourite of Australian retail and institutional investors alike: in a market that loves a good dividend (many leading blue chip stocks pay 5% or 6% yield, a rarity in other developed western markets), they offered stable income and the possibility of growth.

Early structures came and went before the market really took off in the early 1990s, as more and more companies saw the merits of removing lazy assets from the balance sheet and turning them into a popular listed vehicle.

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?