How can SREITs keep up as international competition intensifies?

A new REIT association was officially launched today.

The managers of the country’s biggest real estate investment trusts have teamed up to promote the growth and development of the S-REIT industry with the formation of the REIT Association of Singapore (REITAS), which was officially launched today.

REITAS is managed by nine executive committee members, representing organisations from the REIT, finance, legal and trustee sectors. Chua Tiow Chye, who is also Chief Investment Officer of Mapletree Investments group, holds the association's inaugural Presidency, with Sonny Tan as REITAS CEO.

Among REITAS’ goals is the need to propel local REITS.to greater market prominence in regional and global capital markets.

This goal is particularly striking against a backdrop of greater competition from neighboring countries, many of which are rolling out new and aggressive policies to boost their own REIT markets.

In an interview with SBR, REITAS CEO Sonny Tan shared his insights on how Singapore can remain an attractive and competitive destination for REITs, not only to both to retain and grow existing REITs but also to attract more foreign REITs to be listed here.

“The authorities need to maintain a conducive operating environment for REITs in terms of operating rules and guidelines, and regularly update the tax regime to ensure that the REIT managers and investors are incentivized or at least not disadvantaged,” he said.

He also added that the government must ensure that the supporting infrastructure services for the REIT ecosystem is strong and efficient. Authorities should also train, upgrade and encourage sufficient supply of a pool of professionals and managers for the country’s REITs.

The local REIT industry is still in its early stage, with Singapore's first REIT having only been listed 12 years ago.
However, the industry has seen tremendous growth since, with 33 REITs in Singapore and over S$61 billion market cap. 

"We need a body to focus on the very specific needs of the REIT industry in Singapore, as the challenges faced by REIT industry are very different from other asset classes and other real estate-related businesses. REITAS aims to strengthen this young industry, and better engage investors and regulatory authorities as a unified body," said REITAS President Chua Tiow Chye .

REITAS currently has over 40 organisations in its membership, with more than 70% (by market capitalisation) of the S-REIT players signed up, as well as tremendous support from trustees, law firms, financial institutions, property consultancies, and academic institutions.