Singapore's REIT sector is the biggest in Asia outside of Japan, with 34 trusts listed and a combined market value of about $50 billion, according to data.
After consulting the industry, the Monetary Authority of Singapore
said it would scrap a 60 percent leverage limit for REITs with a credit
rating. They would be subject to the same limit as other REITs, but MAS
said it would increase the leverage limit for all REITs to 45 percent
of its total assets, from 35 percent currently.
It also increased the limit on property development activities to 25 percent of a REIT's assets, from 10 percent, to allow more operational flexibility.
MAS will require REIT managers to disclose the justification for each type of fee charged, as well as the methodology for computing performance fees and justification of how the methodology takes into account unitholders' long-term interests.
It did not announce when the reforms would be implemented, but said they would be phased in to facilitate smooth implementation by the industry.
It also called for REITs to strengthen corporate governance. Managers and directors should be bound by a statutory duty to prioritise investors' interest; at least half of board members must be independent directors if unit holders do not have the right to appoint directors; and managers will be required to disclose their remuneration policy and procedures in annual reports, MAS said.
The biggest Singapore-listed trusts include CapitaLand Mall Trust, Ascendas REIT and CapitaLand Commercial Trust.
There have been concerns that REIT managers' pay may encourage them to take actions contrary to the interests of investors, such as buying more property to raise the trust's market value but potentially lower the yield investors receive.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
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It also increased the limit on property development activities to 25 percent of a REIT's assets, from 10 percent, to allow more operational flexibility.
MAS will require REIT managers to disclose the justification for each type of fee charged, as well as the methodology for computing performance fees and justification of how the methodology takes into account unitholders' long-term interests.
It did not announce when the reforms would be implemented, but said they would be phased in to facilitate smooth implementation by the industry.
It also called for REITs to strengthen corporate governance. Managers and directors should be bound by a statutory duty to prioritise investors' interest; at least half of board members must be independent directors if unit holders do not have the right to appoint directors; and managers will be required to disclose their remuneration policy and procedures in annual reports, MAS said.
The biggest Singapore-listed trusts include CapitaLand Mall Trust, Ascendas REIT and CapitaLand Commercial Trust.
There have been concerns that REIT managers' pay may encourage them to take actions contrary to the interests of investors, such as buying more property to raise the trust's market value but potentially lower the yield investors receive.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
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