Market watchers say other forms of securitisation are available. But vehicles such as asset-backed securities, synthetic securitisation with credit derivatives and commercial mortgage-backed securities are unlikely to appeal to SingLand. Covered bonds are another way to securitise assets by property income streams, but where the assets remain on the company's balance sheet and it continues managing the properties. Covered bonds are heavily regulated. DBS issued the first local covered bonds in 2015 and United Overseas Bank followed in 2016.
Singapore Land Group’s (SingLand) AGM on Apr 30 was uneventful with just two shareholders asking questions to the board. One shareholder asked whether the management is still looking at establishing a REIT to monetise some of its assets.
SingLand’s chairman, Wee Ee Lim said a listed REIT is a matter of market timing and pricing. “We are looking at various other options. A REIT is not the only option. Organising a REIT takes a long time with paperwork and market timing is important; pricing is important. You also need underwriters that are willing to take the risk at the pricing that we are looking for. So there are many, many moving parts. It is certainly one of the many options that is available to us to realise certain values and to mitigate some of the operating yield risk as well.”
