rooster59 Posted September 18, 2020 Share Posted September 18, 2020 New REITs allow property owners to set buy-back price By THE NATION A new category of real estate investment trusts (REIT) will be set up as a measure to help property businesses affected by the Covid-19 crisis. The Securities and Exchange Commission (SEC) said the new REITs will come with a buy-back obligation under which properties are sold back to their owners at a specified period and value. For example, if a hotel’s unit value is Bt100 during normal times, during the Covid-19 crisis, the owner can sell them to the REIT at Bt50 in order to boost financial liquidity. The owner can specify that he/she will buy the hotel back in five years at Bt70, whether the value then is higher or lower than Bt70. Under the other category, so-called “REIT with first right”, owners are given first option to buy back their properties but no price is fixed in advance. If the owners are not interested in repurchasing, the properties can be offered to other investors. The SEC said that REIT investment units will be sold to general investors, with conditions and details similar to debentures. Official conditions on the new REITs should be effective by the fourth quarter of this year, it added. Source: https://www.nationthailand.com/news/30394786 -- © Copyright The Nation Thailand 2020-09-19 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates 1 1 Link to comment Share on other sites More sharing options...
Popular Post Barnabe Posted September 19, 2020 Popular Post Share Posted September 19, 2020 This sounds like a really bad idea 2 1 Link to comment Share on other sites More sharing options...
vukovar77 Posted September 19, 2020 Share Posted September 19, 2020 Quote For a REIT investors it seems to be a good idea,not bad one.I am not sure how it will work in a real life.Better to stay aside for now. Link to comment Share on other sites More sharing options...
ourmanflint Posted September 19, 2020 Share Posted September 19, 2020 Isn't this just a "pawn Shop" for business? Hardly a new idea, and the only people that ever prosper are the pawn shop owners 2 Link to comment Share on other sites More sharing options...
Banana7 Posted September 19, 2020 Share Posted September 19, 2020 And what if the hotel owner is bankrupt in 5 years at the the time they offered to buy back the units at 70B, using the original post example? The REIT, and its investors, could get screwed. And the REIT earns what on the unit for the next 2 or 3 years, until tourists return? Nothing, since there are no foreign tourists! And the REIT has to maintain the property and pay land taxes, security services, etc. etc. What a scam! Link to comment Share on other sites More sharing options...
Elkski Posted September 20, 2020 Share Posted September 20, 2020 This idea sounds so stupid I must not have read it correctly or understand this 1 Link to comment Share on other sites More sharing options...
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