The Securities and Futures Commission (SFC) today launched the REIT Channel to facilitate the authorisation of new real estate investment trusts (REITs) for public offerings, as part of its ongoing efforts to advance the development of Hong Kong’s REIT market.
The new dedicated, one-stop channel enables both local and global REIT applicants to consult the SFC regarding their applications on a confidential basis, thereby enhancing their listing preparation and efficiency.
In parallel, the SFC has streamlined the authorisation process and documentary requirements for REITs, taking into account the latest updates under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (SEHK) and market practices (Note 1). Under the streamlined process, the SFC anticipates that a new REIT authorisation application can be decided on within four weeks from take-up under normal circumstances (Note 2).
Further, to facilitate secondary offerings of existing SFC-authorised REITs, a circular has been issued to REIT managers today setting out certain streamlined documentary requirements (Note 3).
“By enhancing the regulatory transparency and efficiency for REIT applicants, the latest initiatives underscore the SFC’s commitment to driving the long-term growth of Hong Kong’s REIT market and the city’s appeal as a vibrant fund-raising and investment hub,” said Ms Christina Choi, the SFC’s Executive Director of Investment Products. “We welcome both local and international REIT managers and asset owners to set up their REITs in Hong Kong. With the new initiatives, applicants can seize REIT sector opportunities as they arise, and navigate Hong Kong’s dynamic capital markets with confidence.”
Prospective REIT applicants and their professional advisers are welcome to contact the SFC through the REIT Channel via email at REIT_Channel@sfc.hk on their proposals.
Notes:
1. The following documents regarding the streamlined process for new REIT authorisation applications have been updated and published on the SFC website:
- an updated Checklist on REIT Authorisation and Documentary Requirements;
- an updated Checklist for Application for Authorisation of Real Estate Investment Trusts; and
- updated Frequently Asked Questions relating to Real Estate Investment Trusts.
2. The authorisation timeframe is subject to, for example, whether the application submission is complete and whether the applicant responds to the SFC’s questions in a timely manner.
3. Secondary offerings refer to the issuance of units subsequent to a REIT’s listing on SEHK, including offerings to existing unitholders such as rights issues and open offers. The streamlined document will focus on disclosure on information relating to the offer and be more succinct on information relating to the REIT which is already subject to ongoing disclosure and reporting requirements.
