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Estate - Produced by National Real Estate Investor Magazine August 2007 VOL.2    

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In This Issue
>   Russia Rewards: Risk tolerant investors embrace Moscow
>   Asian REIT Review: Consolidation on the horizon
>   Derivatives: Can they revolutionize the real estate industry?
Briefs
>   Investment Notes
>   Foreign Exchange
>   Did You Know?
 
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Russia Rewards : Risk tolerant investors embrace Moscow

Despite its history of political instability and corruption, Russia has emerged as one of the top real estate markets in Eastern Europe. The risks of this emerging market cannot overshadow its booming economy and growing household wealth. Read Article ...

Asian REIT Review : Consolidation on the horizon

If Asian REITs follow the path of their U.S counterparts – and they have so far – then a wave of consolidation will begin sometime over the next two years. It’s been almost six years since Japan ushered in Asia’s first real estate investment trusts in September 2001. Today there are 41 in Japan, with a total market capitalization of approximately $50 billion, and nearly 100 listed REITs and pending initial public offerings (IPOs) in Hong Kong, Singapore and a handful of Southeast Asian countries. Read Article ...

Derivatives: Can they revolutionize the real estate industry?

Across the world, derivatives are an important tool used when investing in stocks, bonds and commodities. But, commercial real estate is the only major asset class in the world that doesn't have a supporting derivative market. If it did, the derivatives market would likely eclipse $1 trillion. Read Article ...
Briefs

Investment Notes

Investment in non-traded real estate investment trusts (REITs), real estate partnerships and limited liability companies reached $7.33 billion during the first half of 2007, setting an all-time six-month record for these types of direct investment programs.

That amount is an 183 percent increase over the first half of 2006 when $2.59 billion was invested, according to the Investment Program Association (IPA), the national association for the non-traded direct investment industry, and Robert A. Stanger & Co., a Shrewsbury, N.J.-based investment banking firm that specializes in the direct investment securities markets. More...

Foreign Exchange

After several months of wrangling and debate, Germany’s parliament passed REIT legislation in March 2007. The new legislation, which calls for G-REITs to operate like their UK equivalents, is retroactive to January 1, 2007.
To qualify as a G-REIT, the organization must:

  1. have a free float of at least 85 percent
  2. have no shareholder hold more than 10 percent of the fund
  3. pay out 90 of income as a dividend
  4. obtain 75 percent of profits from real estate
    More ...

Did You Know?

Nearly 70 percent of large companies believe that long commutes caused by a lack of affordable housing near work centers increase employee stress and trigger negative emotion among employees, according to a new survey released by the Urban Land Institute (ULI).

“Ever-increasing commutes are taking a heavy toll on our urban areas, from a social, economic, and environmental aspect,” says ULI Senior Resident Fellow William H. Hudnut III. “Something’s got to give.” More ...
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