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The Monetary Authority of Singapore (MAS) is seeking the public’s feedback on its proposed changes to the local real estate investment trust (REIT) market, according to a consultation paper released Thursday (9 October).
Key updates include raising the borrowing cap of unrated REITs to 45 percent of their total asset value from 35 percent currently, while those with credit ratings have the option to leverage up to 60 percent.
The central bank also proposes to increase the development limit of a REIT to 25 percent of its deposited property from 10 percent. However, the trust must gain its unitholders’ approval and the proportion above 10 percent should be allocated solely for the redevelopment of a property it has owned for at least three years, which it will continue to hold for at least three years after redevelopment.
In addition, REIT managers will be required to disclose its remuneration policies as well as the actual compensation of its CEO, directors and key executive officers.
Feedbacks and comments should be addressed to the agency’s Market Conduct Department, and must be submitted not later than 10 November. Based on media reports, the proposals could be implemented in 2016.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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