Occasionally, I browse this site. reitsweek.com I think it’s informative and has lots of news for Real Estate Investment Trusts (REITs). It has more news from Singapore but when you browse through, you would notice Malaysian REIT news and occasionally Hong Kong ones too. REITs are for those who believes in property as an investment but does not have enough funds to buy commercial properties for example. You can then buy REITs which are focused in the type of commercial properties that you like. No, I do not have any holding of REITs currently.
So, what’s up lately? Well, related to both Malaysia and Singapore, we learnt that SIME Darby’s take over of Saizen REIT ran into a roadblock. For now, nothing has happened. MRCB-Quill REIT which has acquired Menara Shell has received approval to list 438 million new units due to the acquisition. If you fancy Menara Shell, you can now sort of buy a very small piece of it through MRCB-Quill REIT. An earlier REIT news about Hong Kong revealed just how different property prices are between this part of the world and them. A REIT called Prosperity REIT will be buying a 24-storey office tower for HKD1.875 Billion (RM1 billion). It has only a total of 144,780 sq ft. In other words, it’s around RM7,000 per sq ft. By the way, Kowloon is cheaper than Hong Kong island. Some reports say up to 42 percent cheaper.
There, a few pieces of REIT news across Malaysia, Singapore and Hong Kong just for some reading pleasure. Yes, I also learnt some new things about REITs too. I would personally still prefer to buy property stocks instead of REITs. Oh yeah, current market meant that my property stocks are only providing me dividends instead of price appreciation. REITs would have given me higher dividends, well if only I had bought it which I did not. If you are not ready yet or need some cover from the many uncertainties, REITs do fit the bill. Just make sure you know what those REIT’s assets are before you buy. Cheers.
written on 7 Oct 2016
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