There has been a dramatic change in the short-term outlook for Asia-Pacific Real Estate Investment Trust (REIT) markets compared to a year ago, a REIT Asia Pacific benchmark survey has found.
The findings indicated 47 per cent of respondents predict companies will increase the size of their existing REITs compared to 27 per cent last year, according to the Baker & McKenzie/The Trust Company survey.
Of the 140 local and regional property professionals surveyed 20 per cent expected additional REITs will be launched, which is a 17 per cent increase on 2009 data.
“We have seen real evidence of this with the IPO of the Cache REIT on the Singapore Exchange in April 2010, the first new REIT IPO since December 2007, and more innovative moves such as the dual listing of the Fortune REIT in Singapore and Hong Kong,” the report said.
“After the lows of 2009, REIT markets across Asia-Pacific are starting to recover, although they remain a long way below the highs of the period between 2001 and mid-2008, where the size of the Asia-Pacific REIT market grew a multiple of forty times.”
Investors in Australian REITs should be encouraged by very strong anticipated growth prospects for next year, the report said.
