Asian Market For Real Estate Investment Trusts Forecast To Grow 
Asian Market For Real Estate Investment Trusts Forecast To Grow
The
Asian market for real estate investment trusts (Reits) is expected to
grow this year after a strong showing in 2006 resulting from buoyant
equity markets and robust economies, a property consultancy's report
said on Thursday.
Twenty-seven new Reits floated in the first 11
months of last year boosted the total market capitalization of
Asian-listed Reits by 66 per cent to 63 billion US dollars, up sharply
from 38 billion US dollars at the end of 2005, said CB Richard Ellis
(CBRE).
"Asian Reits will likely follow their present expansionary trend in 2007," said the consultancy's executive director Danny Mohr.
Robust economic conditions support continued demand for property and a more benign interest rate outlook, he said.
With
the market evolving, CBRE said Reits with hotels, hospitals and even
infrastructure projects are being offered. These are diversifying asset
types beyond conventional office, retail and industrial property.
While
Singapore's conducive regulatory regime and competitive tax system
favourably positioned the city-state to draw an increasing number of
cross-border Reits listings, Thailand, South Korea and Hong Kong were
considered the laggards in the market.
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