Property Owners Queue up to Sell Shares in Asian Trusts

June 27, 2007	(Be the first to rate this story!)  Loading ...
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Asian property owners are considering to sell shares in around 15 real estate investment trusts (REITs) within the coming year, says Michael Smith, head of Asian real estate investment banking at Goldman Sachs Group Inc.

There is a large capital inflow coming into the Asian real estate, adds Smith.

Jakarta-based Lippo Group, a US$12 billion banking conglomerate operating in the US, will sell $5 billion of assets to new real estate trusts.

Some renowned property owners are like the Embassy Group, plans an initial public offering (IPO) in Singapore.

Most property owners are taking the route to Reits to raise capital amid increasing demand for real estate from investors. REIT raises money from equity investors to buy properties.

Property funds of Morgan Stanley have posted annual gains of more than 20% since the year 1991. Investments are largely coming from the public REIT market, big realty players in China and India, and private equity funds, says Smith.

This renowned global financial services firm recently made the headlines regarding raising $8 billion in the world’s largest property fund which will further park about half money in Japan and 25% in other countries.

Real estate funds including REITs may raise a whopping $69 billion globally in 2007, says the data showcased by Private Equity Intelligence Ltd.

Goldman Sachs, a full-service global investment banking and securities firm drew $4.07 billion for property fund.

News Published Under:   Real Estate India |

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