-       China launched a long-awaited pilot scheme on April 30, permitting the issuance of listed REITs backed by income-producing infrastructure projects.

 

-       While the pilot scheme lacks a specialized legislative and taxation framework for REITs and includes rather narrow limitations on underlying assets and leveraging, China’s prior experience gained from developing quasi-REITs, along with its depth of infrastructure and pool of capital, provide a solid foundation for the successful launch of REITs.

 

-       CBRE believes the REIT pilot scheme will help logistics developers and investors to diversify funding structure and accelerate capital recycling, and further raise investors’ interest in this asset class.

 

-       This ViewPoint by CBRE Research also provides advice on the key criteria for promoting successful development of C-REITs in the future.