The big news recently revolves around KREIT’s handling of the OFC purchase. The ramification of that is a lot of the blogging community starts talking that its about time MAS took notice of it.
My take? About time. I first got to know about this when my friend passed me this damning analysis from an independent analysis on the REIT scene in Singapore. Back then (3 years ago), the analyst raised the same thing about Singapore REITs
- Trustee Fees, Management Fees and Sales Fees means that it doesn’t matter how much cash flow the REIT produce for investors, they still make money.
- The sponsors have a great incentive to dump assets in their REITs. It’s a win win for them.
Ms Teh Hooi Leng had an article today in Business Times that took a look at all cash calls of the REITs listed in Singapore. For the full article you can read them for free at night at the Business Times [Article here >>]
Here’s the table in the article