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Shanghai: More policies released to promote the development of Infrastructure REITs

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On 21 June, the first batch of infrastructure REITs were launched officially. On the same day, Shanghai published the “Implementation Opinions on Shanghai’s Accelerating the Establishment of Internationally Competitive Real Estate Investment Trust Funds (REITs) Development New Heights”, also known as “Shanghai REITs 20 Articles”. The “Shanghai REITs 20 Articles” included 20 policy measures in six aspects, which can be summarized into three key focuses 1) establish a special fund for the development of Shanghai REITs to support the development of infrastructure REITs business; 2) extend the coverage of current supportive policies in the regards of attracting high-quality institutions and talents to infrastructure REITs; and 3) strive to ensure the implementation of national-level supportive policies, by actively submitting eligible projects to the authorities.

Colliers Commented:

With the refined REITs policies, Shanghai provides strengthening support to build an internationally competitive REITs market, which will effectively attract investment and revitalize existing assets. The “Shanghai REITs 20 Articles” are also expected to support the establishment of relevant institutions and draw talents specialized in investment, operation and management, which will help introduce and penetrate professional infrastructure operation and management skills. Importantly, the “Shanghai REITs 20 Articles” creates strong momentum to develop and invest in new infrastructure assets such as industrial parks and logistics warehouses in the Yangtze River Delta region, improving building qualities and capital values overall.