Real estate executives discuss SFC Reit proposals

The experiences of larger Reit markets such as Singapore and Australia suggest Hong Kong's industry might benefit from having greater flexibility but the devil is in the detail.

A group of real estate industry participants has weighed-in on proposals submitted to the Securities and Futures Commission to revamp the rules governing real estate investment trusts Reits.

The proposals could broaden the investment mandate for local Reits, and include relaxing restrictions on Reit investments into properties still under development, as well as lifting a ban on investments on property-related financial instruments.

But opponents have a number of concerns. It takes time to generate returns on early-stage property investments and some cite worries that Reits managers may be tempted to chase short-term or high-risk investments, raising the risk profile of a product that’s...

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