RIETs International Allocation Views
From HodHood
Contents
Top 20 FREQUENT WORDS
estate 107 reit 80 investment 72 management 40 fund 38 reits 36 assets 31 tax 29 trust 28 income 26 structure 24 development 18 pakistan 18 sale 18 companies 17 invest 17 rules 17 related 16 research 16 investments 15
DOCUMENT KEY POINTS
- comparison to other modes of real estate investment table characteristics of various investments in real estate direct property real estate corporate property reits ownership company equity bonds units in a listed shares of a listed debt issued by the type of investment in investment trust share of company owning underlying real physical real estate corporation owning real estate and other estate company
- the reit does not pay tax on its profits thereby reit is one of the vehicles that maximizing dividends to shareholders who then pay their tax have single taxation on their dividends and on profits made when they sell their shares
- public unit real estate only should be invested in real trusts that carry on estate and real estate assets should be income trading business are not related assets generating accorded a flow through treatment reit required to hold the property for at least two years leverage unlimited subject to thin aggregate borrowing shall total borrowings should capitalization rules not at any time exceed not exceed of of the total gross deposited property asset value
- nonavailable resident corporate unit a c dividend and interest holders paid to non resident unit holders is subject to withholding tax as dividends and interests conversion to reit n a there is no specific no special tax rules for status transition regulation in transition of property from hong kong governing the a normally taxable entity transformation of a to an sreit
- issues hindering growth of organized structures for real estate investment the following are the critical bottle necks which are hindering the growth of organized real estate sector in pakistan
- historically the rules and regulations have had a tilt towards the tenant as compared to the owners however the condition is getting slightly better
- in addition to this under the income tax ordinance the income of a mutual fund or an investment company registered under the nbfc rules or a unit trust scheme constituted by an assets management company registered under assets management companies rules is not taxable if not less than ninety percent of its accounting income of that year as reduced by capital gains whether realized or unrealized is distributed amongst the unit or certificate holders or shareholders as the case may be
- research paper real estate investment trust operating environment for a reit mortgage lender re str te ict no ion ory so ss nl mi en pro de rs mortgage mortgage debt document service laws taxation property eminent equity rights reit domain government investor cash flow police power landlord a use of leasehold tenant laws property n l do ease so cu c tion ts me i nt str nan tenant re te income and wealth taxation source pwc benefits of investment scheme structure amc structure w
- proposed reit structure under nbfc rules development investors reit real estate purchase or construction of property to be leased fund manager developmemt reit fund out management investors reit real estate acquisition and management single purpose companies fund manager management reit fund hybrid reit investors real estate acquisition and management real estate purchase or construction of property fund manager hybrid reit fund single purpose companies the development reit will typically concentrate on real estate acquisition for purchase or construction
- after the development is finished the development reit will sell the property to either management reit or hybrid reit or to other interested parties and capitalize the capital gains for the investors
- research paper real estate investment trust hybrid reit operational structure investors land fund manager developmemt reit fund capital gains property property capital gains fund manager management reit fund rental income tenants investors who are willing to revoke rights to their property to obtain benefits from leasing structures may enter into sale and lease back agreements with management and hybrid reits which would then be similar to a paghri structure prevailing in pakistan
- pension funds should be allowed to invest in reits however given the low volatility of real estate investment the pension funds should be allowed to invest in reits with minimal quantitative restrictions tenancy laws a c the tenancy laws need to be classified as criminal law and not family law to allow efficient execution for the property tenancy laws to be redefined and formed under reit structure
- land records maintained on paper or cloth has preservation updating and retrieval proble miss computerization is natural solution for all these proble miss the government of india has already taken initiatives to computerize land records in the country and has successfully implemented it in the state of karnataka
- however the markets will not function smoothly unless the rental yields improve tenancy laws are strengthened official and unofficial pricing issue is settled paghri system is abolished and the time consumed in legal proceedings is reduced
- research paper real estate investment trust annexure i alternate solution sale and leaseback by banks and leasing companies sale and leaseback is an arrangement in which one sale and leaseback agreement party sells a property to a buyer and the buyer immediately leases the property back to the seller
- the lessee will capitalize the capital gains developer asset price individuals that he would obtain on selling his property and as a result this will be a installments management hybrid investment structure similar to paghri system institutions corporates reit whereby a rental will be paid by the property rental lessee to the lessor
- proposed changes a c banks and leasing companies should be allowed to write leases for property a c land property sold under sale and leaseback agreements should be tax free
- research paper real estate investment trust will provide a way to obtain exposure in real estate thus improving the number of products available for investment
- the remaining of the fund s total assets may be invested in other assets such as liquid assets real estate related assets non real estate related assets or asset backed securities
- where a leasehold property is acquired the management company must ensure that the consent of the relevant authority to transfer the lease has been obtained before the fund s prospectus is registered with the sc or where it is an excluded offer the information memorandum is deposited with the sc or prior to the acquisition of the leasehold property in the case of an existing fund and
- at least of the fund s total assets must be invested in liquid assets real estate related assets non real estate related assets and asset backed securities the investment focus for both management and development reit should be different for open ended and closed ended funds to incorporate redemptions
- where the revaluation surplus is to be utilized for the issuance of bonus units only up to of such revaluation surplus may be capitalized into bonus units valuation of real estate related assets and non real estate related assets for the purpose of determining the fund s net asset value the valuation of the assets and liabilities of the fund s investments in real estate related assets and non real estate related assets where applicable shall be based upon a process which is consistently applied and which leads to valuations that are objective and independently verifiable
- the units of the reit fund shall be held by or more persons for all years of operations and not more than of the units may be held by five or fewer persons
- research paper real estate investment trust at least two persons in senior management positions each of whom will have at least years experience in managing collective investment schemes
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DOCUMENT WORD ANALYSIS
Main Category
- AlHuda Material\sukuk islamic
KeyWords
fund islam invest shariah equities asset manage stock index companies global marketability production return risk investor countries sharecropping busi financi
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DOCUMENT REFERENCES
Number of Pages
16
Published Date
2106-02-07 09:28:15
