Real estate investment trusts often provide investors with some of the best ways to receive higher returns for their investments, as it allows them to have access to diversified assets and regular income flows.
If you’re looking to invest in a property trust, Australia offers competitive returns that are considered the best among their global counterparts. For instance, casino tycoon James Packer’s Crown Resorts Ltd. plans to list a REIT on the Australian bourse that would own up to A$2 billion of Australian hotels.
The company would 51% of the proposed REIT. Excluding the Crown Towers Melbourne, the spin-off entity would have a portfolio of more than 2,300 hotel rooms comprising the Crown Promenade, the Crown Metropol and the Crown Towers Perth hotels in Melbourne and Perth.
Upon the new REIT’s listing, Crown Resorts intends to occupy each of the REIT’s properties under a long-term lease. The company said the proposed REIT spinoff requires the approval of the company’s board, the Australian Securities Exchange and other regulatory agencies.
Credit Suisse said the company’s plan resembles how a property trust could unlock the most value for investors. According to Perpetual corporate trust manager Andrew Canine, a REIT would help Crown Resorts highlight its real estate assets.
Meanwhile, Viva Energy REIT said it joined the ASX Ltd.’s official list on Aug. 3. The official quotation of 690,151,562 stapled securities issued at A$2.20 apiece began on the same day at 12 p.m., Australian Eastern Standard Time, on a conditional and deferred settlement basis, according to a filing.
The new listed REIT’s shares debuted on a strong note in the ASX, as its share price climbed to A$2.52 per share on the first day. The company has a portfolio of 425 petrol retail outlets throughout the country, providing investors with a unique investment exposure to service stations, The Motley Fool Australia noted.