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Jones Lang LaSalle, one of the world's leading real estate services and money management firms, is planning to launch a Hong Kong or Singapore listed realty trust product targeting the Chinese market.
The move represents the latest attempt by leading multinational developers to launch real estate trusts listed on overseas markets aimed at the development of projects in China.
According to senior officials from the firm, the real estate investment trust (REIT) will be run by LaSalle Investment Management, a member of Jones Lang LaSalle.
The company will buy high-end offices, hotels and shopping centers in China before converting them to trusts and listing them on stock markets in Singapore or Hong Kong.
At present, LaSalle Investment is working with partners on the selection of projects in several cities, said James Wong, Jones Lang LaSalle's international director and head of management services in Asia.
"They are still looking around (for possible projects)....and the work is still at a preliminary stage, " Wong added.
REITs, a major financial tool allowing the creation of a portfolio of assets that deliver dividends to shareholders through income produced by those assets, are already popular in the United States, Australia and are now emerging in Europe and Asia.
Currently, there are no REIT-related regulations and listing rules for the Chinese mainland. Singapore allows offshore properties to be listed on its stock exchange, a facility which has attracted many organizations setting up REITs.
Wong declined to further clarify how big the Jones Lang LaSalle REIT will be or the likely date of any launch.
Other international rivals are also making progress in the same area, headed by the Singapore-listed CapitaLand, which is beefing up efforts to establish a China-focused REIT.
"We are making progress in preparing for the launch of the fund, and the China specific fund will be invested not only in high-end offices, but hotels, shopping centers and service apartments,"' said Li Zhengjie, communication manger of CapitaLand China.
Li said the fund is likely to be listed on the Singapore stock exchange, but declined to give further details.
Other companies eyeing such a trust for investment in the booming Chinese property market include DBS Bank, a Singapore bank that has four branches in Beijing, Shanghai, Guangzhou and Shenzhen.
(China Daily May 13, 2005)
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