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The Securities and Futures Commission (the "SFC") has recently issue the finalised code on Real Estate Investment Trusts ("REITs") which sets out the guidelines for authorising and regulating REITs in Hong Kong. A REIT is an investment vehicle that invests in real estate such as office buildings, shopping malls, hotels, service apartments and recreation parks.
REITs are rapidly emerging as a new financing/investment alternative in Asia. In particular, the current low interest rates and the volatile stock markets have turned investors' interest to the real estate market as an alternative source of investment. At the same time, real estate investment has become far less country-specific and the geographic diversification from investing across a number of different jurisdictions is increasingly the norm.
Closely watching the development of the REITs market in Hong Kong, we have been preparing for our role by building on our experience from other markets where REITs currently operate and adapting this with our local knowledge.
In assembling our REITs advisory team, we have recognised the need to combine real estate and investment management skill sets to offer products and service offerings focused on real estate but drawing in investment management skills as necessary. This will include advice on every aspect of the REITs establishment including accounting, tax and regulatory issues, corporate restructuring, audit and advice on initial public offerings, fund-structuring...to name but a few so that our clients are well-positioned to identify and seize new opportunities that will unfold as the market evolves. |
