Property markets in Japan, ASEAN countries unaffected by global financial tremors
Wednesday, 28 November 2007
According to CB Richard Ellis, a total of 11 new Real Estate Investment Trusts (REITs) were listed in Asia during the first half of 2007, bringing REIT market capitalisation to over US$80 billion as of June 2007. REIT capitalisation in Asia is approximately twice the level it was at the end of 2005.
According to the "REITs Around Asia 1H 2007" report prepared by CBRE Research Asia, Japan remains the largest REIT market in the region, with market capitalisation having attained a level of US$49.1 billion as of the first half of 2007, and acquisition activities by J-REITs remaining at buoyant levels.
While Singapore and Hong Kong are striving to be regional REIT centres, the Thailand and Malaysia REIT markets have also enjoyed significant growth through the listing of domestic REITs. South Korea was the only market to record a reduction in market capitalisation as only two K-REITs reached maturity during the review period.
In Thailand, two property funds were listed on the Stock Exchange of Thailand in the first half of 2007, bringing the total to 14, with a market capitalisation of about THB 46.4 billion. The JC Property Fund (JCP) was listed in January, with the Government Savings Bank Private Fund holding over 99 per cent of units and little activity in the public market. JCP´s THB 620 million portfolio consists of space in the JC Kevin Office Tower A building and car park, both held under a 30-year lease with an option to extend for five years. Meanwhile, Gold Property Fund (GOLDPF) was listed in May, and has invested in the 30-year land and building leasehold at Mayfair Marriot Executive Apartment serviced apartment complex, with an option to renew for a further 30 years. The 26-storey building is owned by a subsidiary of Golden Land Property Development. GOLDPF has guaranteed rental returns from the property for five years and will pay dividends of not less than 90 per cent of the annual net profit. The dividend yield is expected to be about 8 per cent.
Following the strong first half performance, the US sub-prime lending crisis sent tremors through global financial markets and led to stock market volatility across the globe during July and August 2007. However, as the generally robust fundamentals of Asian property markets have been as yet unaffected by turbulence in the financial markets, in its recently released report CBRE Research Asia stated that the recent price corrections have made Asian REIT valuations more attractive to bargain-hunting investors and those seeking long term periodic income. Also, there has been no sign of a slow down in portfolio building via acquisitions by major REIT sponsors, who are taking a long-term view in developing REITs in the region.
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Property-report.com
According to the "REITs Around Asia 1H 2007" report prepared by CBRE Research Asia, Japan remains the largest REIT market in the region, with market capitalisation having attained a level of US$49.1 billion as of the first half of 2007, and acquisition activities by J-REITs remaining at buoyant levels.
While Singapore and Hong Kong are striving to be regional REIT centres, the Thailand and Malaysia REIT markets have also enjoyed significant growth through the listing of domestic REITs. South Korea was the only market to record a reduction in market capitalisation as only two K-REITs reached maturity during the review period.
In Thailand, two property funds were listed on the Stock Exchange of Thailand in the first half of 2007, bringing the total to 14, with a market capitalisation of about THB 46.4 billion. The JC Property Fund (JCP) was listed in January, with the Government Savings Bank Private Fund holding over 99 per cent of units and little activity in the public market. JCP´s THB 620 million portfolio consists of space in the JC Kevin Office Tower A building and car park, both held under a 30-year lease with an option to extend for five years. Meanwhile, Gold Property Fund (GOLDPF) was listed in May, and has invested in the 30-year land and building leasehold at Mayfair Marriot Executive Apartment serviced apartment complex, with an option to renew for a further 30 years. The 26-storey building is owned by a subsidiary of Golden Land Property Development. GOLDPF has guaranteed rental returns from the property for five years and will pay dividends of not less than 90 per cent of the annual net profit. The dividend yield is expected to be about 8 per cent.
Following the strong first half performance, the US sub-prime lending crisis sent tremors through global financial markets and led to stock market volatility across the globe during July and August 2007. However, as the generally robust fundamentals of Asian property markets have been as yet unaffected by turbulence in the financial markets, in its recently released report CBRE Research Asia stated that the recent price corrections have made Asian REIT valuations more attractive to bargain-hunting investors and those seeking long term periodic income. Also, there has been no sign of a slow down in portfolio building via acquisitions by major REIT sponsors, who are taking a long-term view in developing REITs in the region.
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Property-report.com