We are delighted that IREIT is the first pure-play REIT with German assets to list in Singapore as well as in Asia.
With an IPO market capitalisation of about S$370 million, IREIT Global brings the total number of REITs and property trusts listed on SGX to 39 with a combined market capitalisation of more than S$68 billion.
With a clear understanding of the market and its conditions, the IREIT has a high degree of risk mitigation built into it.
Some of the unique features of the IREIT include its incorporation under Bahrain's Trust Law whereby a board of trustees follow international best practices that will ensure protection of unit holders' interests, distribution of 90 per cent of the income of the trust on a quarterly basis, restrictions on risky developments or off-the-shelf opportunities, geographical and property diversifications, cap on Ijarah financing, and absolute transparency.
Capitalising on significant corrections in real estate sector and chances of further correction down the line, we believe that by the time IREIT deploys its corpus, the markets will provide some of the most exciting entry opportunities to be profited from in the medium to long term," Inovest chief executive Dr Khalid Abdulla said.
He said that strict criteria and a disciplined approach were used in building the pipeline of properties for the IREIT, which are expected to provide superior risk-adjusted returns to investors.
A buyer of an IREIT unit is essentially buying a share in a physical asset with long-term benefits, the potential for regular income through quarterly distribution of cash profits, as well as appreciation in property values stemming from property acquisition at highly competitive prices.
Given the strict criteria and supervision coupled with disciplined approach to building the pipeline, IREIT
will be in the best position to offer superior risk adjusted returns to its investors," he added.
Lack of tax advantages due to absence of tax regimes and meagre awareness of IREITs in the general public coupled with the recent slump in business cycles has not allowed the idea to evolve in the region and its potential to be fully realised.
The academic and training institutes along with the chambers of commerce can organise courses, seminars and workshops to highlight the working modalities and advantages of IREITs.
IREITs can offer special openings in the UAE from Islamic-themed hotels, to industrial units with superior returns.