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20-11-2010, 04:59 PM
Hi d.o.g,
Thanks for sharing your views on REITs. What are your opinions on the latest business trust structure - a property developer trust - which develops its own assets for rental or sale to other REITs. At the moment, there are only 3 such Trust namely Indiabulls, Ascendas India Trust and Treasury China Trust. Treasury China Trust is developing a logistic park in Beijing and an extension to its City Centre building and has hence forecasted a doubling of its revenue by 2012. Ai-Trust is building 3 properties which will be ready next year. Since they are developing their own assets, does it negate the risk of asset dumping from sponsors ? If they sell their structures, they can also recycle capital for new projects. But I guess it is highly risky as well with plenty of capital risk since the Trust is paying interest expense NOW for an asset that may generate cash-flow in the FUTURE. I guess it will be interesting to see a shipbuilding shipping trust haha ! Then again, some of the local shipbuilders build their own fleet and charter it out hmm.
Cheers,
Nick !
Thanks for sharing your views on REITs. What are your opinions on the latest business trust structure - a property developer trust - which develops its own assets for rental or sale to other REITs. At the moment, there are only 3 such Trust namely Indiabulls, Ascendas India Trust and Treasury China Trust. Treasury China Trust is developing a logistic park in Beijing and an extension to its City Centre building and has hence forecasted a doubling of its revenue by 2012. Ai-Trust is building 3 properties which will be ready next year. Since they are developing their own assets, does it negate the risk of asset dumping from sponsors ? If they sell their structures, they can also recycle capital for new projects. But I guess it is highly risky as well with plenty of capital risk since the Trust is paying interest expense NOW for an asset that may generate cash-flow in the FUTURE. I guess it will be interesting to see a shipbuilding shipping trust haha ! Then again, some of the local shipbuilders build their own fleet and charter it out hmm.
Cheers,
Nick !
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.