REIT ASIAPAC MAGAZINE REITASIAPAC AUGUST 2020 ISSUE | Page 4

REIT ASIAPAC
Cover Story
CHINA’S NEW
REIT STRUCTURE:
WHAT ARE THE PROS
AND CONS?
The announced structure differs in many
ways from established regimes in other
countries, and all eyes will be on the first
batch of C-REITs to be launched in the
second half of this year.
By Matthew Schmidt
Senior Analyst at B&I Capital Ltd.
China published the structure for a pilot REIT programme and its
corresponding draft guidance on April 30, 2020.
In this new programme, C-REITs will be equity REITs managed by
mutual funds. The structure will afford investors returns through
both dividends and capital gains while providing greater trading
liquidity than is currently available with the existing on-shore
“pre-REIT” structures. C-REITs will be required to pay out 90% of
core earnings to investors in the form of dividends.
The new programme only includes industrial-type asset classes
(warehouse, data centres, and business parks) along with
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