THE Insurance Commission (IC) has issued a circular in line with allowing insurance and pre-need companies to invest in Real Estate Investment Trusts (REITs
), to help them prepare for the government's 'Build, Build, Build' (BBB) infrastructure program.
Funa said all REITs
must first be approved by the Securities and Exchange Commission (SEC).
This can be attributed to the claim of market players that legal and administrative requirements have made investment in the Philippine REIT
market difficult," Funa said.
ISE-REIT Director Aftab Ahmad Ch on the occasion gave a detailed presentation on the issues faced by the REIT
sector and proposals for the growth of the same.
Whilst the UAE REIT
Regulations have sought to clarify the pre-existing UAE REIT
regime, there are still areas of ambiguity, including the types of real estate that fall within the definition of 'real estate assets' and uncertainty with respect to governance and valuation practices.
II has obtained fully committed financing from SunTrust Bank and KeyBank National Association to ensure all necessary capital available to fund the transaction.
developed in the US as a means for a real estate company or trust to mitigate its tax liability.
The study, The Emergence of Real Estate Investment Trusts in the Middle East, launched by PwC Middle East, finds that market capitalisation of Reits
compared to listed real estate companies in the UAE is around 3 per cent.
It may be noted that regulatory framework for REITs
was initially introduced by SECP in 2008
: This type of REITs
do not own the properties themselves, but the debt on the properties.
Four trends are driving equity REIT
valuations, according to one portfolio manager.