Analysing REITS

[r0n]

Is it really true that Reits are into co-investing properties development. So far, this is the first time I heard about it. My understanding is they can buy a completed property and then rent it out or asset enhancement but definitely not into property development. Could you let us know which Reits are into co-investing properties development? Seem shocking news.

Real shocking ! But which reit did that or is doing that ?

Co-investing in property development is not shocking. CMT, capitaland and capitamall Asia co-develop West Gate mall.

In fact, some REITs are strong enough to build a new property from scratch.

MINT is building one for Hewlett Packard. It is currently building a data centre for Equinix.

CACHE is co-developing with CWT on a huge one for DHL.

These properties are usually already pre-leased with annual rental escalation built in.

Suntec REIT also building an office in Australia.

And the list goes on.....

Property development (current) by Singapore REITS:

Mapletree Industrial Trust
Equinix

Cache Logistics Trust
DHL Supply Chain Advanced Regional Center

CapitaCommercial Trust
CapitaGreen [40% Interest, Capitaland 50%, Mitsuibishi Estate Asia 10% ]

CapitaMall Trust
Westgate [30% Interest, CapitaMalls Asia 50%, Capitaland 20%]

Far East Hospitality Trust
Sentosa Hotel [30% Interest, Far East Organisation Centre 70%]

This is all that I could find which are specifically defined by the announcement as greenfield projects in the past years. Ascendas REIT have many greenfield projects but I am unable to find a current example.

There are also plenty of AEI that involves redeveloping the plot of land to take advantage of zoning to increase the GFA but they do not reference the 10% limit on greenfield projects, probably because they own the building before demolishing/redeveloping. [e.g. AIMSAMPCapital REIT - 20 Gul Way, Mapletree Logistics - Benoi Hub ]

An interesting example is the 177 Pacific Highway purchase by Suntec REIT which they don't consider it as a greenfield project, probably because the vendor takes the risk of any complications and delays in the project.