Analysing REITS

[Drizzt]

thanks for bringing out something i didn't know i have written specuvestor! i was lurking and reading because you guys were having a great conversation here. i think it is a grey area, but someone seem to tell me that to renew land lease in China is not that expensive, perhaps it is like the HGB in indonesia.

i only know its not cheap in SG. Viva industrial trust have some properties that is really short lease. perhaps most prominent is VBP with 16 years. So this topic was brought up at the REITs symposium. what Wilson Ang the CEO said is that it is likely URA have zoned that area as a biz park, so they will keep going with it.

There is no official figure how much it cost to renew the land lease, but he hinted usually we can take reference from JTC, and he said it won't cost a lot.

However, i tried to do the math, and it seems it reaches a figure of $130 mil. i don't think that is a small sum. folks who have went down this route may be able to correct what i just said.