REIT

Market volatility could suit the famed private equity firm as it chases opportunities in new property arenas.

An Australian Real Estate Investment Trust is an investment trust that owns and usually operates a portfolio of income-producing property. It offers plenty of benefits, but has some drawbacks, too.

Property developers are stepping up the push for new city towers nationally in the expectation that office staff will return and apartment living will also surge as people are drawn back to city centres in coming years.

The property sector is proving a profitable ground for potential listings of new companies on the ASX, with Newmark Capital the latest to weigh up a move as it readies a potential listing of its $300 million hardware trust.

Listed real estate companies have avoided the worst of Wesfarmers’ move to close or convert about half of the Target network but face the risk of more shutdowns in August, when the chain reveals its final plans.

The strong demand for alternative property assets has been put on display with investors pouring almost $300m into the country’s largest unlisted healthcare property fund.

Hong Kong-based Link REIT has made one of the biggest direct property plays of the year, snapping up an office building beside Westfield Sydney for about $683 million.

The steep rise in commercial property values could place the creditworthiness of some real estate investment trusts under pressure, according to Moody’s Investors Service.

Retail and office landlords have led the listed property sector over the calendar year to date as investors search for yield and the stability of landlords with long-dated tenants. This article originally appeared on theaustralian.com.au/property.