REIT managers worried over BTS project difficulties

Only AREIT unveiled a project completion.

According to CIMB, as the land leases of industrial sites have been shortened to 30 years (from 60) coupled with the volatility in global markets, several REIT managers have warned of the increasing difficulty of engaging in BTS projects as their returns have been lowered by the shorter land tenures. 

For this reason, the number of BTS projects announced by the various industrial REITs under our coverage had dropped in 3Q13.

"During this period, only AREIT announced the completion of its BTS development at Nexus @ One-North, while no REITs indicated new upcoming BTS projects," CIMB said.

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