Download Baker & McKenzie whitepaper: Property developers to take advantage of REITs as fundraising tools

Thailand’s Securities and Exchange Commission (SEC) has approved the issuance of regulations governing the establishment of real estate investment trusts (REITs) in Thailand.

The regulations will enable property developers to inject any type of real estate asset into an REIT, while public investors will benefit from an alternative investment product. REITs will be structured as trusts and regulated under concepts similar to those of listed companies.

Apart from offering more flexibility than Property Funds for Public Offering (PFPO), REITs provide other advantages like types of permissible investment, the offering and allocation of REIT units, the development of real properties and an increase of the gearing ratio. To encourage the establishment of REITs, the SEC will prohibit the establishment of new PFPOs starting one year from the time REIT regulations come into effect.

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As one of the first international law firms to recognise the importance of the Asia Pacific region, Baker & McKenzie has acted for real estate industry players investing in the region for more than 40 years. With an established track record of domestic and cross-border transactions involving a variety of real estate investment vehicles, innovative and effective solutions are developed for local and international clients. Baker & McKenzie is the welcome cocktail sponsor for the 11th annual Real Estate Investment World Asia 2012.

Get more insights at the Real Estate Investment World Asia 2012, taking place from 26 – 28 June 2012 at Marina Bay Sands, Singapore. Visit our website or download conference brochure for more information.