Let's start a HK residential REIT

Hi Duracell

How will the double stamp duty affect the REIT?

Any offer to the public would require SFC approval of both the offering document and licensing of the REIT manager (both of which would be be very hard to impossible to get).

From a legal standpoint, a non-public offer could be done (and I have seen them both in HK and other countries ) but I question why anyone would want to put their money into such a structure? I've said "no" whenever I get asked to invest in one. If I had enough money to buy a property myself, I'd rather go that route. If I didn't, I'd rather buy listed property shares/REITs - I can get the same yield without the loss of liquidity as well as having a better regulatory framework standing behind my investment (Listing Rule/REIT Code)?

What is the attraction for the investors? We would have to offer something that added value to the investment over and above holding for passive income.

If it is a good time to buy, then why not just buy?
If it is a bad time, then having the costs of a Reit will just make it worse.

Why not do a calculation, to see how much you would have to invest before the set-up, legal, and management costs swallow all the income. My guess is, you would have to be at HKD 100 million plus before you would breakeven. Let's see your calculations, so we can understand how thoroughly you have investigated these very real costs.

Duracelll,
Do you lack courage or something? You keep wanting to invest along side other people. Why not just invest your own money, get on with it. And you can tell us after a while how it is going.

In the past year, I have sold one flat in HK, and bought two properties in the Philippines, and two houses in Philadelphia. I still believe both the exit from HK and the entry into the other four were good moves. But there have been some genuine learning experiences along the way, and everything was not quite as simple as I had first hoped.

Nothing beats real life experience. And you can probably only get that by investing your own money.

hi i am interested in investing with a large group of people, preferably in a bar / restaurant in HK? Is this possible. thanks