Hong Kong has a dynamic property market, with demand both in the residential sector and in the office sector. Real estate investment trusts in Hong Kong can be just as versatile as the demand on the market with owners buying office or apartment buildings to other types of structures like warehouses.
Real estate investment trusts (REIT) are publicly traded on the Stock Exchange but they can also be private or simply not listed. REIT listings in Hong Kong have become more popular since they were launched, in 2005.
Foreign investors who want to buy shares in a REIT in Hong Kong are looking for the initial public offering (IPO) and are also considering other particularities. The experts at our Hong Kong law firm can help you understand more about real estate investments and specific trusts.
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Investing in REITs in Hong Kong
Because REITs are collective investment schemes, they generally focus on large commercial buildings or large residential projects. Examples include malls, hotels, office buildings, etc. When investing in a real estate investment trust, entrepreneurs enjoy the financial benefits of owning real estate, with the actual management processes being handled by a professional trust manager.
Profits derived from investing in a real estate investment trust are paid to the individuals under the form of dividends.
REITS particularities in Hong Kong
A real estate investment trust is subject to authorization from the Securities and Futures Commission in Hong Kong. The Code on Real Estate Investment Trusts includes the regulations for these types of structures.
Investors who want to submit an application for authorizing a REIT must do so with the Securities and Futures Commission (SFC). The procedure requires the applicant to submit a set of documents. One of our lawyers in Hong Kong is able to give you complete information on these requirements.
Applicants who want to register a REIT in Hong Kong should present a proposal scheme to the SFC. The SFC will verify the accuracy of the statements as well as of the documents submitted for the registration.
You can contact our Hong Kong law firm for more details on investment funds in the city and the specific legislation for foreign investments.