Real Estate Investmend Fund (REITS)
Real Estate Investmend Fund (REITS) is an instrument used to raise funds from the investment community to be invested in real estate assets, assets related to real estate, and/or cash equivalents.
Real estate assets that can be used as the underlying of REITs:
- Mall
- Office building
- Apartement
- Warehouse
- Hotel
- Hospital
- Other type of real estate assets
The structure of REITs:
Investment portofolio composition of the REITs
According to OJK Rule No. 64/POJK.04/2017 regarding Real Estate Investmend Fundin the form of Collective Investment Contracts, REITs investment portofolio may only consist of:
Listing procedures of REITs participation units
The procedure for the listing of REITs Participation Units on the Indonesia Stock Exchange can be seen as follows:
Benefits of REITs issuance:
| For the owner of real estate assets | For the economy |
|---|---|
| Obtain new funding for business expansion | Increasing the development of various sectors, such as property, infrastructure, health services, tourism, etc. |
| Tax incentive | Increasing the regional revenue potential from taxes on hotels, restaurans, entertainments, billboards, parking, property tax, etc. |
| Turning illiquid assets into liquid assets |
Regulations regarding REITs:
Benefits of investing in REITs:
- Income and price performance (cash dividend and capital gain)
- A very affordable investment alternative in the property sector
- Investment diversification
- Protection against inflation
- Transparency
Further information regarding REITs listed on IDX can be accessed here
Infrastructure Investment Fund (DINFRA)
Infrastructure Investment Fund is an instrument in the form of a collective investment contract which is used to raise funds from the investment community to be invested mostly in infrastructure assets by the investment manager.
Infrastructure assets that can be used as the underlying of Infrastructure Investment Fund:
- Transportation infrastructure
- Road infrastructure
- Water resources and irrigation infrastructure
- Water supply infrastructure
- Wastewater management system infrastructure
- Solid waste management system infrastructure
- Electricity infrastructure
- Oil, gas, and renewable energy infrastructure
- Other infrastructure assets
The structure of Infrastructure Investment Fund:
Investment portofolio composition of Infrastructure Investment Fund
According to OJK Rule No. 52/POJK.04/2017 regarding Infrastructure Investment Fund in the form of Collective Investment Contract, the investment portofolio of Infrastructure Investment Fund may only consist of:
Listing procedures of Infrastructure Investment Fund participation units
The procedure for the listing of Infrastructure Investment Fund Participation Units on the Indonesia Stock Exchange can be seen as follows:
Benefits of the issuance of Infrastructure Investment Fund:
| For the owner of infrastructure assets | For the economy |
|---|---|
| Obtain new funding for business expansion | Acceleration of infrastructure development |
| Turning illiquid assets into liquid assets | The availability of infrastructure can potentially increase the economy of certain region |
Regulations regarding Infrastructure Investment Fund:
Benefits of investing in Infrastructure Investment Fund:
- Income and price performance (cash dividend and capital gain)
- An affordable investment alternative in the infrastructure sector
- Investment diversification
- Protection against inflation
- Transparency
