Monetary Authority Issues New Guidelines For Property Trusts

Source : Channel NewsAsia, 28 September 2007

New guidelines for Real Estate Investment Trusts (REITs) have been issued by the Monetary Authority of Singapore.

The changes are aimed at improving safeguards for investors and to provide greater clarity and flexibility for commercial transactions.

The new guidelines will enhance the disclosure requirements on the use of short-term yield-enhancing arrangements.

In addition, discounts will not be allowed for institutional investors when the trusts are listed and REITs will have to invest at least 75 percent of their assets in income-producing real estate.

In revising the guidelines, the MAS said it has considered public feedback and held talks with REIT players.

Singapore is now the largest REIT market in Asia outside Japan, with a total market capitalisation of more than S$26 billion. - CNA/ch