Property consultant CBRE paints rosy outlook for REITs in Asia

Property consultant CB Richard Ellis (CBRE) has painted a rosy outlook for real estate investment trusts in
Asia in 2007.

It said it expects Asian REITs to follow their present expansionary trend this year.

CBRE cited robust economic conditions, continued demand for property and a more benign interest rate outlook for its optimism.

But it also warned that investors should be mindful of the volatility in the equity market and the increasing divergence in REIT performance.

CBRE said that in the first 11 months of 2006, Asia saw the listing of 27 new REITs and property trust funds, pushing the total market capitalisation to US$63 billion.

That was up sharply from US$38 billion at the end of 2005.Source: Channel NewsAsia, 10 January 2007