S-Reits could lose out from family office investment scheme exclusion

[SINGAPORE] Industry watchers say the exclusion of Singapore-listed real estate investment trusts (S-Reits) and business trusts from an initiative to invigorate the equities market through family offices is “disappointing”, and could see struggling small and mid-cap Reits miss out on a much-needed liquidity boost.

The Monetary Authority of Singapore (MAS) last month announced adjustments to the Global Investor Programme (GIP) – which grants permanent residency to eligible foreign investors – among other moves to boost the Singapore equities market.

New applicants under the “family office” option of the GIP must now allocate at least S$50 million of their assets under management to equities listed on Singapore-approved exchanges.

Surprisingly, these approved equities exclude Reits and business trusts.

Previously, this capital could be spread across equities, Reits, private equity in Singapore-based businesses, and other asset classes.