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Singapore real estate investment trust (S-REITs) are well-positioned to weather the downcycle and adapt to industry disruptors across all sectors.
This was the key takeaway from a roundtable discussion of REIT industry chief executive officers, organised by Macquarie Securities Singapore.
AIMS AMP Capital Industrial REIT Management Limited CEO Koh Wee Lih noted that while the drop in global commodities saw multinationals reduce their need for space in Singapore, there was a growing demand from local players.
“Growing trends such as online retail has also created new opportunities for the industrial REIT sector. Whether you buy from Orchard Road or online, the fulfilment is carried out by warehouses so it will benefit the industrial sector, particularly the warehouse and logistics segment,” he said.
Starhill Global REIT Management Limited CEO Ho Sing revealed that online shopping has even helped Singapore retail educate consumers on new brands overseas.
On disruption by the sharing economy providers to the serviced residence sector, Ascott Residence Trust Management Limited CEO Ronald Tay said their business is not significantly affected by sharing economy providers, which appeal more to leisure travellers.
He said the REIT’s sponsor, The Ascott Limited, has embraced the sharing economy by investing in Tujia, the biggest online apartment sharing platform in China.
“Besides listing our properties on Tuija to reach out to more customers, Ascott also formed a joint venture with Tujia to leverage Ascott’s strengths in managing properties and providing services to guests as well as Tujia’s online capabilities,” added Tay.
The leaders, however, said the increasing compliance remains a challenge to the Reit sector, which should be differentiated from financial institutions.
“I hope we maintain a good regulatory and compliance environment for attracting global capital into S-REITs,” said Ng Hsueh Ling, CEO of Keppel REIT Management Limited.
Commenting on competition from other REIT markets within the region she noted that while it is not easy to build a REIT market, Singapore has an edge in providing a market that investors can easily understand and feel safe to invest.
In fact, S-REITs remain one of the most stable, transparent and consistently performing assets available for investors, said Macquarie Securities executive director Soong Tuck Yin.
Image: [From L to R] Ms Ng Hsueh Ling, CEO of Keppel REIT Management Limited, Mr Ho Sing, CEO of Starhill Global REIT Management Limited, Mr Soong Tuck Yin, Executive Director of Macquarie Securities, Mr Ronald Tay, CEO of Ascott Residence Trust Management Limited and Mr Koh Wee Lih, CEO of AIMS AMP Capital Industrial REIT Management Limited.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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