Source : The Business Times, February 26, 2008
The country could become a major Reit centre for the region.
THE Asian Public RealEstate Association (Aprea), which represents and promotes publicly traded Asia- Pacific realestate , has set up a Singapore chapter, following those set up in Hong Kong/Macau, and Japan.
Aprea CEO Peter Mitchell said: ‘Singapore’s listed realestate market is one of the most exciting and fastest-growing in the world. Our new chapter reflects the increasing interest of the participants and investor community in this vibrant market.’
Mr Mitchell highlighted that market capitalisation of Singapore’s Reit market of US$21.6 billion is only second to Japan, which has a Reit market capitalisation of US$46 billion.
The third-largest Reit market is Hong Kong with a market capitalisation of US$8.5 billion, followed by Taiwan (US$1.7 billion), Malaysia (US$1.6 billion), Thailand (US$1.5 billion) and South Korea (US$0.6 billion).
Aprea was established in mid-2005. Founding members include ARA Trust Management, Ascendas-MGM Funds Management, Westfield Group, Macquarie Bank and Hongkong Land. To date, it has 125 members.
Mr Mitchell believes that Singapore has the potential to be a major cross-border Reit centre for the region, citing reports of upcoming Japan, India, Indonesia and China Reits being listed here.
‘We want to make sure our members are fully supported in achieving this goal,’ he added.
While projections of a further 10 Reits being listed here this year may be seen as ‘a bit optimistic’ in the wake of the US sub-prime crisis and global credit crunch, Mr Mitchell believes there are still opportunities in the Asian realestate sector.
‘For some players, 2008 will present a period of good opportunities for companies that are well capitalised and don’t rely on credit,’ he said.
He added that those players who are not, ‘will find it hard to compete and face some difficulties’.
Describing the Reit sectors in Japan, Hong Kong and Singapore as ‘mature’, he also said the general downturn in the economy could see a return to ‘fundamentals’. ‘We have seen the end to financial engineering,’ he said.
Aprea seeks to create a market based on international best practice standards.
It will sponsor and publish research and analysis and assist with education and training within the industry.
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