The case study of the domestic real estate securitization on trust property -- Comparison between REITs and REAT

• Main Authors: Hwang Chi Ming, 黃奇明
• Other Authors: 林炯垚
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/03738909437058635134

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 94 === Since the promulgation and implementation of Taiwan’s Real Estate Securitization Act on July 23, 2003, the competent authority has subsequently approved many real estate securitized products. Included are two main types of securitization – the Real Estate Investment Trust (REIT) and the Real Estate Asset Trust (REAT), which trade on the national exchange and in the over-the-counter market respectively. These transactions have grown increasingly popular over time, providing the long-awaited fueling of the domestic real estate market. Seeing that real estate securitization has been practiced in the US since the 1960’s and has undergone many reforms, Taiwan passed the Real Estate Securitization Act in 2003. The purpose of the enactment was to develop the national economy by increasing the liquidity and fund raising channels of real estate through securitization while improving environmental quality, stimulating the real estate market, and protecting investments through the effective development and use of real estate. The Act was constructed by considering primarily the structures of the Real Estate Investment Trust system of the US and the Special Purpose Trust that falls under the Securitization of Asset System of Japan, as well as adopting parts of the rules stipulated under Taiwan’s existing “Regulations Governing Mutual Trust Funds” and “Financial Asset Securitization Act.” The most important element remains the use of a trust as the vehicle for investment. This paper uses real case studies successfully launched in Taiwan, specifically Cathay No.1 for REIT and Wan Kuo Commercial Building for REAT, to explain and understand the domestic operating situation and comparative studies of the two systems, as well as their prospective development and impacts.