Deacons June 22, 2020 - United States of America Hong Kong’s SFC Consults on REIT Code On 9 June 2020, the Securities and Futures Commission (SFC) began a two-month consultation on proposed amendments to the Code on Real Estate Investment Trusts (REITs). The SFC intends to provide Hong Kong REITs with more investment flexibility. Key proposed changes to the Code on REITs include:
The proposals are subject to investment restrictions requiring that at least 75% of the GAV of a REIT must be invested in recurrent rental income generating real estate (including qualified minority-owned properties), and not more than 25% of the GAV may be invested in property development projects, non-qualified minority-owned properties, financial instruments and other ancillary investments. There are also other miscellaneous proposed amendments, which serve to better align requirements and codify existing practices. The consultation will end on 10 August 2020. The consultation paper can be viewed here. Read full article at: https://www.deacons.com/news-and-insights/publications/hk’s-sfc-consults-on-reit-code.html |