Looks like the rules are once again changing. The SET will be banning new property funds to replaced by real estate investments to both protect and draw investors. This article was in "The Nation" today and i found it interesting, hope you enjoy it!
The Nation
New funds raised Bt27.4 billion while existing funds expanded by Bt2.59 billion. In 2010 and 2011, property funds raised only Bt8.59 billion and Bt14.46 billion.
"The value should rise further, through fund-raising by new and existing funds before the end of 2013," he said.
Developers are encouraged to launch property funds before the end of next year to attract investors, as dividends paid out by property funds to corporate and individual investors are not subject to withholding tax.
However, a year after the REIT law takes effect next month, they will be slapped with a 10-per-cent withholding tax.
For better protection of investors, all of REIT's properties will be held by banks as trustees. Property funds establish a juristic body to guard their properties.
The Securities and Exchange Commission will ban new property funds once REIT rules are enforced.
Expecting busy traffic until the deadline, the SET is urging developers wanting to take advantage of the current rules to seek free advice and prepare for the launching of their property fund.
At present, 39 property funds are listed with combined market capitalisation of Bt149.28 billion. Among the four entering the market this year was the Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, which mobilised the biggest-ever amount - Bt18.4 billion.
The CPN Commercial Growth Property Fund is preparing for listing this month.
The Nation
The Stock Exchange of Thailand expects more property funds to be launched before they are replaced by real estate investment trusts, which provide greater investor protection at the cost of lower returns.
Bt30 billion was raised through property funds in the first eight months of this year, which was a new record, Chanitr Charnchainarong, senior vice president, said yesterday.New funds raised Bt27.4 billion while existing funds expanded by Bt2.59 billion. In 2010 and 2011, property funds raised only Bt8.59 billion and Bt14.46 billion.
"The value should rise further, through fund-raising by new and existing funds before the end of 2013," he said.
Developers are encouraged to launch property funds before the end of next year to attract investors, as dividends paid out by property funds to corporate and individual investors are not subject to withholding tax.
However, a year after the REIT law takes effect next month, they will be slapped with a 10-per-cent withholding tax.
For better protection of investors, all of REIT's properties will be held by banks as trustees. Property funds establish a juristic body to guard their properties.
The Securities and Exchange Commission will ban new property funds once REIT rules are enforced.
Expecting busy traffic until the deadline, the SET is urging developers wanting to take advantage of the current rules to seek free advice and prepare for the launching of their property fund.
At present, 39 property funds are listed with combined market capitalisation of Bt149.28 billion. Among the four entering the market this year was the Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, which mobilised the biggest-ever amount - Bt18.4 billion.
The CPN Commercial Growth Property Fund is preparing for listing this month.
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