Like what I wrote for Phillip SGX APAC Dividend Leaders REIT ETF, just throwing out some food for thought for this one.
A REIT ETF such as Nikko AM Straits Trading Asia Ex-Japan REIT ETF is a great tool to have at our disposal. It would fit in nicely if you’re trying to construct a portfolio like Rick Ferri’s Core Four, for example.
Portfolio Charts is a website that I really like, by the way.
Needless to say, a regional or global REIT ETF exposes us to markets that we are not familiar with. Have you wondered what’s behind the flashy website and prospectus numbers?
Largest REIT in Asia – Link REIT
The 3rd largest constituent in the ETF is Hong Kong-based Link REIT (領匯/領展). Have you been to Hong Kong? Do you think that REITs in other countries are like the REITs in Singapore?
The REIT was created by the government, which hived off assets from the Housing Authority that included 151 shopping malls – mainly within public housing estates – and 79,000 parking spaces. – Wikipedia
Link REIT has been criticized for being a bloodsucker – forcing out local shops with higher rents and promoting the dominance of chain stores within the estates.
Protests have been held against Link REIT’s outsourcing of asset management. As far as I know, 6 separate managers work with Link REIT. One of them was accused of hiring ‘security officers’ to set up barricades and beating up illegal hawkers. And reporters.
Not quite what you were expecting behind the investor presentations huh?
The company to which Link REIT has outsourced to, you know, they all have a background. It’s not that simple.You know, what happened in Leung King… I just hope that everyone can live in peace, stuff is happening everywhere now. – Uncle Chow, a Cheung Fat estate resident, told HKFP