Bookmark & Share
JUST IN: In response to industry feedback, the Monetary Authority of Singapore (MAS) on Thursday (2 July) announced that it has refined its proposals to strengthen the real estate investment trusts (REITs) market.
The enhancements, which will be phased in to facilitate a smooth implementation by the industry, will include strengthening corporate governance and increase transparency of fee structure where at least half of the manager’s board of directors must be independent directors, if unitholders do not have the right to appoint the manager’s directors.
The changes also include increasing leverage limit imposed on a REIT from 30 percent to 40 percent of its total asset, but a REIT will no longer be allowed to leverage up to 60 percent with a credit rating, MAS said.
“The finalised positions reflect a balanced approach to enhancing safeguards for investors and unitholders while facilitating the growth of a vibrant REIT market,” said Lee Boon Ngiap, Assistant Managing Director, Capital Markets, at MAS.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
Related Articles:
Ascott REIT buys 7 assets in Australia, Japan