Submission on a Consultation Paper on proposed introduction of a statutory scheme of arrangement and compulsory acquisition mechanism for REITs

Hong Kong REITS Association (HKREITA) made a submission to the Securities and Futures Commission (SFC) on 24 May 2024 on the consultation paper on proposals to (i) introduce a statutory scheme of arrangement and compulsory acquisition mechanism for real estate investment trusts and (ii) enhance the SFO market conduct regime for listed collective investment schemes.

HKREITA is supportive of the proposals and has previously made a policy recommendation to the HKSAR Government regarding the introduction of a statutory scheme of arrangement and compulsory acquisition mechanism for REITs.

H-REITs have emerged to offer investors access to a stable income-generating stream. However, as the economic landscape evolves, it is imperative to equip H-REITs with the necessary tools to navigate future uncertainties with resilience and efficiency. The SFC's consultation paper presents an opportunity to establish a robust statutory scheme of arrangement and compulsory acquisition mechanism for REITs. By supporting this initiative, we can foster a more secure and investor-friendly environment that encourages the growth of H-REITs.

Document can be viewed here.