Group calls for HDB units to be injected into REIT

welcome to Singapore Inc.....

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A real estate investment trust (REIT) comprising HDB residential and commercial units should be set up to address excess housing demand, according to academics from the Singapore Management University (SMU) and a Savills analyst.
"It's just a starting point of a discussion...to stimulate some out-of-the-box thinking," said SMU professor David Lee.
Aside from Lee, other authors of the paper mooting this idea are professors Phoon Kok Fai and Phang Sock Yong from SMU, researcher Karol Wee also from the university, and Alan Cheong, Research Head at Savills Singapore.
The paper noted that strong demand for public housing has boosted HDB rental yields, on the back of a growing population as well as rising number of foreigner tenants.
While ramping up HDB supply is the solution, it has to be balanced since an oversupply could crash the market. The authors believe that a marginal oversupply is optimal and a HDB-focused REIT could address some of the challenges simultaneously.
"A very simple example, everytime you build a new block, 10 percent is for rental, so instead of building nine blocks, now you build 10 blocks," explained Prof Lee.
The REIT can also be co-owner of the units, making home ownership more affordable.
Moreover, the units injected in the REIT could be sold to Singaporean CPF members, with a subsidiary of HDB acting as the REIT's manager and the HDB or banks as financiers. Thereafter, the REIT will return to investors the tax-exempt rental income in the form of distributions.
The REIT may also offer an investment alternative that can capture the market's upside without acquiring a physical home, added Prof Lee. However, he cautioned that the concept is "not totally risk free".

Wouldn't that cause the HDB price to rocket up instead since REITs need to pay increasing higher and higher dividends?

Soon we will see another case similar to SMRT where it's National Issues vs Profitability.

Pure Fiction......

A real estate investment trust (REIT) comprising public toilets and commercial toilets should be set up to address under-supply of clean toilet demand, according to academics from the Singapore Loo College (SLC) and a WC analyst.

The paper noted that strong demand for clean toilets has boosted toilet entry cost, on the back of a growing population as well as rising number of foreigner tenants.

While ramping up public toilet is the solution, it has to be balanced since an oversupply could crash the market. The proposers believe
that a marginal oversupply is optimal and a Toilet-focused REIT could address some of the challenges simultaneously.

"A very simple example, everytime you build a new toilet, 10 percent is for rental, so instead of building nine toilets, now you build 10 toilets,"

The REIT can also be co-owner of the units, making toilet ownership more affordable.

Moreover, the units injected in the REIT could be sold to Singaporean CPF members, with a subsidiary of NEA acting as the REIT's manager and the NEA or banks as financiers. Thereafter, the REIT will return to investors the tax-exempt rental income in the form of distributions.

The REIT may also offer an investment alternative that can capture the market's upside without acquiring a physical toilet. However, the concept is "not totally risk free".

(12-08-2013, 08:27 PM)yeokiwi Wrote: Pure Fiction......

A real estate investment trust (REIT) comprising public toilets and commercial toilets should be set up to address under-supply of clean toilet demand, according to academics from the Singapore Loo College (SLC) and a WC analyst.

The paper noted that strong demand for clean toilets has boosted toilet entry cost, on the back of a growing population as well as rising number of foreigner tenants.

While ramping up public toilet is the solution, it has to be balanced since an oversupply could crash the market. The proposers believe
that a marginal oversupply is optimal and a Toilet-focused REIT could address some of the challenges simultaneously.

"A very simple example, everytime you build a new toilet, 10 percent is for rental, so instead of building nine toilets, now you build 10 toilets,"

The REIT can also be co-owner of the units, making toilet ownership more affordable.

Moreover, the units injected in the REIT could be sold to Singaporean CPF members, with a subsidiary of NEA acting as the REIT's manager and the NEA or banks as financiers. Thereafter, the REIT will return to investors the tax-exempt rental income in the form of distributions.

The REIT may also offer an investment alternative that can capture the market's upside without acquiring a physical toilet. However, the concept is "not totally risk free".

IPO at $0.90?

How many "hotel-class" toilets?
How many "Shopping Centre-class" toilets?
How many "Kopitiam-class" toilets?

(12-08-2013, 08:43 PM)NTL Wrote:

(12-08-2013, 08:27 PM)yeokiwi Wrote: Pure Fiction......

A real estate investment trust (REIT) comprising public toilets and commercial toilets should be set up to address under-supply of clean toilet demand, according to academics from the Singapore Loo College (SLC) and a WC analyst.

The paper noted that strong demand for clean toilets has boosted toilet entry cost, on the back of a growing population as well as rising number of foreigner tenants.

While ramping up public toilet is the solution, it has to be balanced since an oversupply could crash the market. The proposers believe
that a marginal oversupply is optimal and a Toilet-focused REIT could address some of the challenges simultaneously.

"A very simple example, everytime you build a new toilet, 10 percent is for rental, so instead of building nine toilets, now you build 10 toilets,"

The REIT can also be co-owner of the units, making toilet ownership more affordable.

Moreover, the units injected in the REIT could be sold to Singaporean CPF members, with a subsidiary of NEA acting as the REIT's manager and the NEA or banks as financiers. Thereafter, the REIT will return to investors the tax-exempt rental income in the form of distributions.

The REIT may also offer an investment alternative that can capture the market's upside without acquiring a physical toilet. However, the concept is "not totally risk free".

IPO at $0.90?

How many "hotel-class" toilets?
How many "Shopping Centre-class" toilets?
How many "Kopitiam-class" toilets?

Any dumb ass also can think of any REIT idea.
The taxpayers are paying the salary of the professors so that they can improve our life. not to make our life more miserable.

I would applause if they have come out with any idea to stop the rental from spiraling up, especially REIT properties.

Maybe we should inject all the professors' offices into REITs and we shall raise the rental yearly to curb excessive demands and oversupply.

(12-08-2013, 08:51 PM)yeokiwi Wrote:

(12-08-2013, 08:43 PM)NTL Wrote:

(12-08-2013, 08:27 PM)yeokiwi Wrote: Pure Fiction......

A real estate investment trust (REIT) comprising public toilets and commercial toilets should be set up to address under-supply of clean toilet demand, according to academics from the Singapore Loo College (SLC) and a WC analyst.

The paper noted that strong demand for clean toilets has boosted toilet entry cost, on the back of a growing population as well as rising number of foreigner tenants.

While ramping up public toilet is the solution, it has to be balanced since an oversupply could crash the market. The proposers believe
that a marginal oversupply is optimal and a Toilet-focused REIT could address some of the challenges simultaneously.

"A very simple example, everytime you build a new toilet, 10 percent is for rental, so instead of building nine toilets, now you build 10 toilets,"

The REIT can also be co-owner of the units, making toilet ownership more affordable.

Moreover, the units injected in the REIT could be sold to Singaporean CPF members, with a subsidiary of NEA acting as the REIT's manager and the NEA or banks as financiers. Thereafter, the REIT will return to investors the tax-exempt rental income in the form of distributions.

The REIT may also offer an investment alternative that can capture the market's upside without acquiring a physical toilet. However, the concept is "not totally risk free".

IPO at $0.90?

How many "hotel-class" toilets?
How many "Shopping Centre-class" toilets?
How many "Kopitiam-class" toilets?

Any dumb ass also can think of any REIT idea.
The taxpayers are paying the salary of the professors so that they can improve our life. not to make our life more miserable.

I would applause if they have come out with any idea to stop the rental from spiraling up, especially REIT properties.

Maybe we should inject all the professors' offices into REITs and we shall raise the rental yearly to curb excessive demands and oversupply.

An "University Properties REITS"? Work like PReits, with Rental Escalation link to (Increase in University Fees + 2%)? Currently having SMU as it's first property, future injection includes NUS and NTU?

In US, some well established education groups are actually listed. Nice thing is that their school fees rarely fall but instead keep rising

Which period did all these coffee shops and FC stalls got sold to people?

The 90s asset enhancement policies. Feedback loop of asset inflation into CPI.

Govt policy screwed up by allowing subsequent resale of these HDB shops.

think these academics have nothing better to do. A road sweeper can do a better contribution.