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.
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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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.
The REIT Code offers instructions on the investment scope of the real estate investment trust. As such, a REIT in Hong Kong needs to be structured to include:
Our lawyers in Hong Kong can give you more details about the REIT Code and how the investments under the real estate investment trust should be divided.
A real estate investment trust set up in Hong Kong offers several important benefits:
In addition to the key benefits briefly listed above, the Securities and Futures Commission also implements a grant scheme applicable to the HK REIT. This is funded by the Government, and it offers subsidies for Hong Kong incorporated real estate investment trusts.
If you are interested in setting up a REIT in Hong Kong, our attorneys in Hong Kong will give you more details about this scheme and the types of expenses that can be covered. A common example of such a covered expense is the cost related to listing the REIT.
The HK REIT is a collective investment scheme and the manner in which it is set up is in the form of a trust, and with having a trustee. In accordance with the REIT Code, it must allow for certain investor protection measures. The experts at our law firm in Hong Kong can give you more information about trust creation and management.
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. These can include the following:
One of our lawyers in Hong Kong can 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 the documents submitted for registration.
If you are an investor in the HKSAR looking for different types of services, our team will give you a complete list of our solutions, and we can also assist you if you are interested in immigration to Hong Kong.
You can contact our Hong Kong law firm for more details on investment funds in the city and the specific legislation for foreign investments.