Restrictions and Requirements on Investments/Activities (REITS-Singapore)

(Just for General Info)
7.1 A property fund should comply with the following restrictions/ requirements:
(a) Subject to paragraph 7.3, at least 35% of the property fund’s deposited property should be invested in real estate. A new scheme will be given 24 months from the close of the first launch/offer to comply with this requirement;
(b) At least 70% of the property fund’s deposited property should be invested, or proposed to be invested, in real estate and real estate-related assets;
(c) A property fund should not undertake property development activities whether on its own, in a joint venture with others, or by investing in unlisted property development companies, unless the property fund intends to hold the developed property upon completion. For this purpose, property development activities do not include refurbishment, retrofitting and renovations.
(d) A property fund should not invest in vacant land and mortgages (except for mortgage-backed securities). This prohibition does not prevent a property fund from investing in real estate to be built on vacant land that has been approved for development or other uncompleted13 property developments.


(e) The total contract value of property development activities undertaken and investments in uncompleted property developments should not exceed 10% of the property fund’s deposited property; and
(f) For investments in listed or unlisted debt securities and listed shares of or issued by property and non-property corporations (local or foreign) and other locally-registered property funds, not more than 5% of the property fund’s deposited property can be invested in any one issuer’s securities or any one manager’s funds. A corporation and its subsidiary companies are regarded as one issuer or manager. Investments in other property funds should not be made with a view to circumventing the letter or spirit of the prohibition on interested-party transactions set out in paragraph 5.