The Executive Yuan of Taiwan is drafting a bill enabling the securitization of real estate. The cabinet has instructed its finance committee to complete the draft within six months, so that it can be submitted to the legislature. The draft should be ready in three to six months.
The bill will include a clause permitting the establishment of special purpose trusts to issue securities underlying real estate assets. Funds raised will be used to develop the real property market, for example, residential and office space properties, shopping centres, and car parks.