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Banking industry

Macquarie Bank Considers Launching Real Estate Investment Trust in Hong Kong

Strategic Insights

— 1 min read

Macquarie Bank's executive director and head of property investment management, James Hodgkinson, has suggested that the company may launch a real estate investment trust (reit) in Hong Kong later this year if certain curbs are lifted. The suggestion comes after the Securities and Futures Commission (SFC) sought the market's views on relaxing its current requirement for locally listed reits to invest only in Hong Kong properties. If the SFC lifts the restriction, Hong Kong would become a more attractive market for reits, and Macquarie would consider launching a reit.

Key Takeaways:

  • Macquarie Bank may launch a real estate investment trust (reit) in Hong Kong later this year if certain curbs are lifted.
  • The Securities and Futures Commission (SFC) is considering relaxing its current requirement for locally listed reits to invest only in Hong Kong properties.
  • Macquarie is the top-ranked real estate equity-raiser in the Asia-Pacific region, with over US$1.3 billion raised last year.
  • The company manages 11 reits, including four cross-border property portfolios that invest in markets in the United States, New Zealand, and Mexico.
  • Macquarie's experience in cross-border reits is crucial in ensuring clear land titles and due diligence.
  • The SFC proposal to allow reits to invest globally aligns with Hong Kong's free market philosophy.
  • A cross-border reit would be attractive to investors, helping them reduce overconcentration risks and capitalize on opportunities offered by overseas property markets.

Statistics:

  • Macquarie raised over US$1.3 billion in real estate equity in the Asia-Pacific region last year.
  • The company manages 11 reits, including four cross-border property portfolios.
  • The SFC consultation period on lifting the restriction for reits to invest in offshore properties is one month.
  • The proposed amendment to allow reits to invest globally is expected to be lifted in June if no strong opposition is made.
  • Macquarie has invested in the Shanghai residential property market and has experience in cross-border reits.

Sources:

  • SFC (no date)
  • Macquarie Bank (no date)
  • The Hong Kong Investment Funds Association (no date)

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