Real Estate Cos Line Up to List in Singapore

July 2, 2007	(Be the first to rate this story!)  Loading ...
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There are planning going around introducing REIT in India. Interestingly, several real estate firms have lined up to get listed on REIT – like vehicles on the Singapore Stock Exchange (SGX).

The famous Embassy Group, Ascendas, and the Delhi based DLF and Unitech are all considering listing their fund structures.

Embassy Group will soon come up with its $150 million IPO. This Bangalore based real estate company has already submitted the required papers for the same. The trust will be managed through a joint venture with Singapore’s Mapletree Investments, a leading real estate company in Singapore.

DLF Assets is may also take a route to REIT on the SGX. The firm was recently in headlines for floating India’s largest IPO. It has already acquired a number of assets of DLF in the special economic zones.

Unitech raised £ 362 mn through AIM, London Stock Exchange by floating a SPV for six IT/ITeS projects. The company is also planning to list REITs overseas including Singapore as well.

A REIT is a tax-efficient vehicle for a corporation investing in real estate. REITs are required to distribute 90 per cent of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.

REIT is an acronym that stands for Real Estate Investment Trust which receives special tax considerations and offer investors high returns and an excellent method to make investments in real estate.

News Published Under:   Real Estate India |

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