The REIT business has long been a fruitful source of securitization activity in the U.S., Australia and Japan. In the ex-Japan Asia market, however, CMBS deals off the back of REITs have been non-existent outside of Singapore, which has seen several transactions completed in the past few years. The good news is that other markets could soon come into play.
Recent legal and regulatory developments in Hong Kong and Malaysia indicate both countries are ripe for REIT activity. With attractive pricing levels available through CMBS issuance, many of the region's ABS professionals are confident securitization will play an important part in financing the purchase of properties transferred into REITs.