...China real estate: a tale of two China-centric REITs Michael C.H. Quek and Seow Eng Ong Department of Real Estate, National University of Singapore, Singapore Abstract Purpose – There is currently no real estate investment trust (REIT) listed in China. As of date, only two REITs – GZI REIT of Hong Kong and CapitaRetail China Trust (CRCT) of Singapore – have securitised Chinese property assets. The purpose of this paper is to examine the driving forces and the obstacles surrounding China REITs, and evaluate REIT securitisation as an exit strategy for Chinese properties. Design/methodology/approach – The paper analyses the performance of the two cross-border REITs and investigates whether REITs holding Chinese assets outperform other listed REITs. Research limitations/implications – CRCT outperforms GZI REIT as well as some of the other Singapore REITs, while GZI REIT ranked second lowest in terms of price performance when compared to other Hong Kong REITs. The limited history of CRCT suggests that when a well-structured REIT holding Chinese assets can perform very well. We also infer that performance is closely linked to portfolio composition and diversification, growth story and originator reputation. Originality/value – The study shows that there is indeed a strong local demand for China REITs, and that REITs can provide an alternative source of real estate financing for Chinese developers and promote a better regulated Chinese real estate market. Keywords Real estate, Investments...
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...A TERM PAPER ONReal Estate Financing | | A TERM PAPER ONReal Estate Financing | | Contents Real Estate Sector in India 2 Role of Government in Real Estate Financing 3 What is a REIT? 3 REIT in India 4 Impact of Government Measures on Real Estate Financing 5 Why would Real Estate Finance work in India 7 Affordable Housing: 7 Smart City Investment Opportunity: 8 Smaller Tier 2 and Tier 3 Cities Offering Immense Growth Potentials: 8 Tier 2 and tier 3 cities have been offering far more real estate projects leading to a pan India growth. Some of the biggest real estate companies are focusing on smaller centers offering investment opportunities galore. With real estate prices in the metropolitan cities getting stagnant to an extent, expect for projects located the new industrial corridors the smaller centers are offering a great opportunity for both investors and real estate manufacturing companies 8 Tax Exemption 8 Available Space 9 The South Asian country has top quality office space of about 350 million square feet across its six biggest cit0ies, according to Jones Lang LaSalle Inc. Of this, about 100 million square feet are potentially available for REIT listings, which could be valued at as much as $9 billion, the broker estimates.The combined debt of India’s six largest developers climbed to a record 394 billion rupees in the 12 months through March 31, more than double the 158.8 billion rupees in 2007, according to data compiled by...
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...__________________________________________________________________ PARKWAY EARNINGS SOAR FROM STRONG OPERATING PERFORMANCE & REAL ESTATE GAINS Highlights: • PATMI rose 570% to S$271.3m over YTD September 2006; • Singapore Hospitals’ revenue rose by 33% to S$344.4m YTD September 2007; • International Hospitals’ revenue grew by 25% to S$128.2m YTD September 2007 on a proforma basis; • Disposal of Singapore hospital properties into Parkway Life REIT generated gains of S$221.0m; • Payout of special dividends of S$85.0 million and special bonus to non-executive staff of S$8.0 million out of the exceptional gains. SINGAPORE, 13 November 2007 – Parkway Holdings Limited (“Parkway” or “the Group”) listed in the Singapore Stock Exchange (SGX) reported a growth rate of 570% in net profit for YTD September 2007. The significant gains were derived from the disposal of the Group’s Singapore hospital properties into Parkway Life REIT and continued strong performance from across core business segments. Proforma Group Financial Highlights YTD September 2007 (S$ millions) 637.1 143.6 271.3 YTD September 2006 (S$ millions) 494.2 116.0 40.5 Change (%) 29 24 570 Revenue EBITDAR (excludes REIT rental) PATMI Revenue for the Singapore Hospitals division rose 33% to S$344.4 million from S$258.9 million. The division’s EBITDAR (ie. excludes REIT rental) rose by 13% to S$86.9 million in YTD September 2007. The Singapore hospital division revenue growth was largely driven by increased foreign patient volume and higher consumption...
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...CONSTRUCTION SECTOR IN INDIA HISTORY Indian Construction Industry is highly fragmented. There are mostly unorganized players in the industry which work on the subcontracting basis. As the Construction activity being labor intensive, construction companies have been mainly focusing on mechanization over past few years. Consequently, growth in quantum of labourers required has declined from 1.6% in FY 04 to 0.9% in FY 08. Projects in Construction industry are mostly working capital intensive. | | The Indian construction industry forms an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living. Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation, etc and is the second largest industry in India after agriculture. It accounts for about 11% of India's GDP. For the first five-year plan, construction of civil works was allotted nearly 50 % of the total capital outlay. In 1954 National Industrial Development Corporation (NIDC), was set up in the public sector which is the first professional consultancy company. Then later many architectural, design engineering and construction companies were set up in the public sector (Indian Railways Construction Limited (IRCON), National Buildings...
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...1.1 BACKGROUND TO THE STUDY In a published report on Business Day by Chuka Uroko (2015), he explained that, Lagos, Abuja and Port Harcourt, Nigeria’ commercial, administrative and petroleum industry capitals respectively, are the top real estate investment destinations, and account for as high as 65 percent of all activities in this asset class, a report by the National Bureau of Statistics has revealed. The report indicated that Lagos has the greatest amount of real estate activities at 37 percent, followed by Abuja with 22 percent and Port Harcourt (Rivers State) with 6 percent, all covering 65 percent of real estate activities in the country. The trio, often regarded as Nigeria’s traditional cities, have seen increased tempo of activity in real estate development and much of the investments that have gone into real estate in the country in the last decade were concentrated in these cities. Nigeria’s has a burgeoning real estate sector, which by the GDP rebasing exercise in the country in April 2014, was discovered to be the fastest growing and sixth largest sector in the Nigerian economy, explaining the rising level of investment in the sector by both local and foreign investors. Foreign direct investment (FDI) is defined as “an investment in which a firm acquires a substantial controlling interest in a foreign firm (above 10 percent share) or sets up a subsidiary in a foreign country” (Chen, 2000). The International Monetary Fund adds “the investor’s purpose is to have an...
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...of Directors of the Manager Particulars of Members of The Property Investment Committee Profile of The Chief Executive Officer of The Manager Performance Data Composition of Investment Portfolio Unitholdings and Market Price Property Portfolio Analysis of Unit Holdings Financial Statements Unit Holders Resource 2 3 4 5 8 10 13 15 16 18 19 20 23 26 81 Corporate Information Manager Pelaburan Hartanah Nasional Berhad (175967-W) (Incorporated in Malaysia) Registered Office Of The Manager Tingkat 4, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : 03-20505100 Facsimile : 03-20505878 Website : www.ahp.com.my E-mail : phnb@pnb.com.my Board Of Directors Of The Manager Tun Ahmad Sarji bin Abdul Hamid (Chairman) Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman Tan Sri Dato’ Seri Ainum binti Mohamed Saaid Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil Dato’ Abd. Wahab bin Maskan Dato’ Idris bin Kechot Secretary Of The Manager Adibah Khairiah binti Ismail @ Daud (MIA 13755) Tingkat 4, Balai PNB 201-A Jalan Tun Razak 50400 Kuala Lumpur. Management Of The Manager Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman (Executive Director) Dato’ Idris bin Kechot (Executive Director) Hafidz Atrash Kosai bin Mohd Zihim (Chief Executive Officer) Trustee AmanahRaya Trustees Berhad (766894-T) Tingkat 2, Wisma TAS No. 21, Jalan Melaka 50100 Kuala Lumpur Telefon : 03-20365000 Facsimile : 03-20720320 Investment Manager Permodalan Nasional Berhad (38218-X) Tingkat 4, Balai PNB, 201-A...
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...principles such as prohibition of riba (usury), gahrar (ambiguity) and maisir (gambling). Moreover, Islamic Capital Market works parallel with the conventional capital market but Islamic capital market is compliance with the rulings of shariah. Most of the shariah compliant assets is carry out in Islamic Capital Market which provide opportunities to various investors who seek to invest in the shariah compliant investments. In fact, Islamic Capital Market help to enhance the economy growth of country. This market also do not deny for non-Muslims to take part in the market. Furthermore, Islamic Capital Market is financial market which can be classify into equity and debt capital market. This capital market facilitates the ability of channeling funds from the surplus to deficit among the borrowers which lacks of fund and investors which has excess of fund. Basically, government and business organizations raise fund through the capital market. The examples of equity market shariah compliant securities in Malaysia are Islamic unit trust, Islamic Real Estate Investment Trust (REIT) and Islamic Exchange Traded Fund (IETF).On the other hand, the examples of debt capital market in Malaysia is...
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...11.431/15.426J Real Estate Finance & Investments I: Fundamentals & Micro-Level Analysis Fall 2006 Introductory Lecture Slides (Selections from Chs.1, 2, 7 of text.) 1 Overview: 1. 2. 3. 4. 5. 6. Magnitude of Real Estate Investment Performance of R.E. Investment The “Real Estate System” (role of capital mkts) The space market The asset market & investment industry Example real world R.E. development investment 2 Magnitude Figure 1a: Net Asset Value of U.S. Structures ($ billions, 2003, source BEA) Total = $ 23,747 Govt. R.E., $5,751 Houses, $11,917 Commercial R.E., $6,079 3 Magnitude Figure 1b: Net Asset Value of U.S. Commercial Real Estate Structures ($ billions, 2003, source BEA) Total = $ 6,079 Billion Institutional, $955 Hotel & Recreational, $554 Office, $1,131 Retail, $1,313 Residential (apts), $1,168 Industrial*, $958 4 Magnitude U.S. Institutional Commercial Real Estate Physical Stock: 44B SF U.S. Commercial R.E. Physical Space (SF) Capital Value: $3.3 Trillion U.S.Commercial R.E. Capital Value ($) Retail 25% Apartment 41% Retail 34% Apartment 25% Warehouse 9% Office 18% Warehouse 16% Office 32% Source: PPR, 2003 5 Asset Mkt Exhibit 1-5: Major Types of Capital Asset Markets and Investment Products Public Markets: Equity Assets: Stocks REITs Mutual funds Private Markets: Real Property Private firms Oil & Gas Partnerships Bank loans Whole Mortgages Venture Debt Debt Assets: ...
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...to number 41 in 2009. Then in 2010 they jumped to number 10. Camden is one of the largest multifamily real estate investment trusts (REIT) and was hit during the recession, but was able to stay successful by investing in its employees. Camden was able to continue to offer a very completive compensation package to lure talent and help develop talent that they already had. To stay a step ahead of everyone else Camden not only needs to offer traditional benefits like medical, but expand on them and think outside the box. Employees spend a lot of time at work, more than they do with their own families, so by offering benefits that help the family out as well is one good way to attract and keep loyal employees. A company’s employees are their number one investment; they can make or break a business. Camden’s dedication to their employees has not only made them a great place to work but a successful business as well. How Camden Stands Above the Rest Although there are five companies listed under the category of construction/real estate Camden is the only real estate company on Fortune’s 2013 list. After the housing crash we just went through why would anyone even want to consider working in real estate? When working for the right company, a company that believes in its employees and compensates its employees it is the right move for anyone! Camden shows its investment in its employees by offering many of...
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...eadership and Organizational Behavior- Due 03/23/2011 Introduction I chose to study my current place of employment, Colonial Properties Trust. Colonial Properties trust is a real estate investment trust (REIT) that creates value for its shareholders through a multifamily focused portfolio, and the management and development of select commercial assets in the Sunbelt region of the United States. As of June 30, 2010, the company owned or managed 34,230 apartment units and 17.8 million square feet of commercial space. Headquartered in Birmingham, Alabama, Colonial Properties Trust is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. Founded in 1970, Colonial Properties Trust completed its initial public offering in September 1993. Colonial Properties Trust’s philosophy has always been to be the Is this essay helpful? Join OPPapers to read more and access more than 650,000 just like it! GET BETTER GRADES star performer in multifamily real-estate and to create superior value for our shareholders. Our values are focused on putting the customer first, gaining their trust, creating a teamwork environment, and remaining heavily involved in our communities. I am choosing to focus on the extensive multifamily portfolio that Colonial Properties Trust maintains instead of their commercial properties. In the current year our CEO Mr. Thomas Louder has asked us to focus on growing the company, improving operations, and achieving...
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...Real Estate Investment Trusts Financial markets transfer funds from those who have excess funds to those who need funds. A financial market is a market in which financial assets or securities such as stocks and bonds can be purchased or sold. Funds are usually transferred in financial markets when one party purchases financial assets previously held by another party. Financial markets facilitate the flow of funds and thereby allow financing and investing by households, firms, and government agencies. Real estate investment trusts or REITs is a good example of a financial market. What are REITs? According to investopedia, REITs are securities that sell like stocks on the major exchanges and invest in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. REITs can also be defined as a real estate company or trust that has elected to qualify under a certain tax provision to become a pass-through entity that distributes to its shareholders substantially all of its taxable earnings in addition to any capital gains generated from the sale or disposition of its properties. Individuals have the possibility to invest in REITs either by purchasing their shares directly on an open exchange market or by investing in a mutual fund that specializes in public real estate. An additional benefit to investing in REITs is the fact...
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...Business plan Zoltany Inc. 200 Cashflow Ave Suite 100 Irvine, Ca 92614 949-555-4545 949-444-5454 949-345-8588 Excecutives@ZoltanyInc.com www.ZoltanyInc.com Contact: Laszlo Zoltany, Founder, CEO (Writing Partner: Derek Basset) Contents Page 1. Executive Summary.........................................................................................................................3 2. General Company Description.....................................................................................................4 3. Products and Services......................................................................................................................6 4. Marketing Plan..................................................................................................................................8 5. Operational Plan..............................................................................................................................12 6. Management and Organization..................................................................................................15 7. Startup Expenses and Capitalization.........................................................................................20 8. Financial Plan.....................................................................................................................................27 9. Appendices.......................................................................................
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...dividend) payout policy would put the company in line with industry payout standards. In addition, it would indicate internal confidence with regards to future earnings. Unfortunately, this policy would absorb cash and possibly limit the availability of cash for future investments, especially since earnings in recent years have been sluggish, and a 15% growth rate may be considered overly optimistic. c. A residual dividend policy removes the need for added debt, and pays dividends only after all projects with positive NPVs were financed. This policy has the potential to limit increased debt, improve growth, and build investor trust. In contrast, dividends would be unpredictable, and decreases in successive dividends would put downward pressure on the share price. d. Share repurchasing would clearly instill confidence in the market by increasing EPS and share price, but would also require that Gainesboro carry more debt. 2. There are two major ways to create stock value. One is to increase share price over time, and the other is to pay constant, strong dividends. Paying a dividend would signal confidence for the future. It would also realign the company with industry payout standards. However, investors with longer investment horizons should realize that a company retaining earnings is looking to reinvest capital and increase firm value, which consequently increases shareholder value. 3. I would be...
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...International Capital Investment Case Study: Nodal Logistics and Custo Brasil Analysis of International Capital Investment Table of Contents I. Introduction 2 II. Analysis of Different Hedging Methods 2 a. Forward Contracts 2 b. Currency Options 3 c. Currency Adjustment Clause 3 d. Local Currency Debt Financing 3 e. Cross-currency Swaps 3 f. No-hedging (“self insure”) 3 g. Extra: Cross-hedging 3 III. Decision 3 IV. References 4 V. Appendix 4 I. Introduction Nodal Logistics Corporation is an American-based Real Estate Investment Trust (REIT), working with warehouses and property acquisition for logistics purposes. Therefore, as a REIT, most of its revenues come from rents and leases. REITS also have a unique tax structure of their own: given that more than 75% of their profits arise from rents from real estate property, and they distribute at least 90% of their current period profits as dividends to their shareholders, they don’t pay corporate income taxes. Hence, as no tax benefits would arise using debt, they typically financed investments with all equity. All these characteristics of a REIT point to a very high profit rate of the business (large up-front capital investments with little actual ongoing operating expenses). However, it is important to bare in mind that a REIT might present some risks to the stakeholders, like investors, if it has vacant properties, if it enters in a risky investment project, or if it faces...
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...properties with the intent to rent the properties to the general public. The business will generate profits from both the ongoing rental income paid to Apartment Complex, Inc. while generating capital appreciation from the long term holding of these properties. Now that that the real estate market has hit come to its bottom, Management expects that the market will have a future growth rate of 5% to 6% per year. The third section of the business plan will further document the residential rental services offered by the business. 1.2 The Financing Mr. Doe is seeking to raise $1,000,000 from an investor. The terms, dividend payouts, and aspects of the deal are to be determined at negotiation. This business plan assumes that an investor will receive 50% of the Company’s stock, a regular stream of dividends, and a seat on the board of directors. The financing will be used for the following: • Financing to acquire the initial Apartment Complex property. • Financing for the first six months of operation. • Capital to purchase a company vehicle. Mr. Doe will contribute $10,000 to the venture. 1.3 Mission Statement Mr. Doe’s mission is to develop Apartment Complex, Inc. into a premier regional real estate investment firm that will acquire apartment complexes and rent properties...
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