February
26, 2008
Asian real estate body sets up Singapore chapter
The country could become a major Reit centre for the region
THE Asian
Public Real Estate Association (Aprea), which represents and promotes
publicly traded Asia- Pacific real estate, has set up a Singapore
chapter, following those set up in Hong Kong/Macau, and Japan.
Aprea CEO Peter Mitchell said: 'Singapore's listed real estate market
is one of the most exciting and fastest-growing in the world. Our
new chapter reflects the increasing interest of the participants and
investor community in this vibrant market.'
Mr Mitchell
highlighted that market capitalisation of Singapore's Reit market
of US$21.6 billion is only second to Japan, which has a Reit market
capitalisation of US$46 billion.
The third-largest
Reit market is Hong Kong with a market capitalisation of US$8.5 billion,
followed by Taiwan (US$1.7 billion), Malaysia (US$1.6 billion), Thailand
(US$1.5 billion) and South Korea (US$0.6 billion).
Aprea
was established in mid-2005. Founding members include ARA Trust Management,
Ascendas-MGM Funds Management, Westfield Group, Macquarie Bank and
Hongkong Land. To date, it has 125 members.
Mr Mitchell
believes that Singapore has the potential to be a major cross-border
Reit centre for the region, citing reports of upcoming Japan, India,
Indonesia and China Reits being listed here.
'We want
to make sure our members are fully supported in achieving this goal,'
he added.
While projections of a further 10 Reits being listed here this year
may be seen as 'a bit optimistic' in the wake of the US sub-prime
crisis and global credit crunch, Mr Mitchell believes there are still
opportunities in the Asian real estate sector.
'For some
players, 2008 will present a period of good opportunities for companies
that are well capitalised and don't rely on credit,' he said.
He added
that those players who are not, 'will find it hard to compete and
face some difficulties'.
Describing
the Reit sectors in Japan, Hong Kong and Singapore as 'mature', he
also said the general downturn in the economy could see a return to
'fundamentals'. 'We have seen the end to financial engineering,' he
said.
Aprea
seeks to create a market based on international best practice standards.
It will
sponsor and publish research and analysis and assist with education
and training within the industry.
(Source:
The Business Times)
