REAL ESTATE INVESTMENT TRUSTS: AN INVESTIGATION INTO THE ADMINISTRATIVE FRAMEWORK IN SINGAPORE

Abstract

In the report to the Minister of Finance dated February 1986, the Property Market Consultative Committee (PMCC) proposed that Real Estate Investment Trusts (REITs) be introduced into Singapore as an alternative vehicle for the channelling of funds into the property sector. This study examines the concept and shows that REITs have become an established component of the market in the U.S.A. and Australia. Their growth in these countries has not, however, been completely problem-free. This study examines the problems under structural, managerial and operational heads and seeks to relate them to the Singapore context. Consideration is given to the administrative framework appropriate to the introduction of REITs in Singapore and the conclusions drawn focus primarily on the importance of establishing adequate control over the management of trust funds.