REIT ASIAPAC
investment banks .
One major catalyst for Korea ’ s public REIT market was the introduction of initiatives to promote the sector by the government providing deferred capital gains for investment in kind into public REITs , tax breaks for individual investors and encouraging REIT formation by sponsors by easing some restrictions and allowing for up to 50 % ownership . They have also relaxed listing rules to make REIT IPO approvals easier . While still a small market capitalisation and far off the radar screen of most investors , the sector has started to grow .
FOREIGN HOLDINGS RISING
The successful and strong performance of Shinhan Alpha REIT , Lotte REIT , ESR Kendall Square REIT and recently SK REIT showed that there is an appetite from local and increasingly foreign investors . Foreign ownership was negligible until the IPO of Lotte REIT . However , foreign holdings have now risen in the last two years to roughly 450 billion won ( US $ 383 billion ) via investments in Lotte REIT , ESR Kendall Square and Lotte REIT ’ s rights issue . This number will again grow as ESR Kendall Square has announced a rights issue to fund major acquisitions and is
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