Summary: The Hong Kong Securities and Futures Commission ("SFC") has issued new regulations for secondary offerings by real estate investment trusts ("REITs"), effective immediately. REITs can now align with the same disclosure and reporting requirements as listed companies, with streamlined content focusing on offer-related disclosure. Key changes include the removal of the need for updated property valuation reports and an ongoing disclosure requirement. Managers can refer to the updated FAQ for guidance.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On October 13, 2025, the Securities and Futures Commission ("SFC") introduced new streamlined content requirements for secondary offerings by SFC-authorized real estate investment trusts ("REITs"). These new regulations come into effect immediately and are designed to align REITs with the disclosure and reporting requirements applicable to listed companies.
Under these revised requirements, REITs can now utilize the content standards applicable to listed companies, with necessary modifications tailored for fund-raising efficiency. Existing disclosure requirements specific to REITs will remain in place, ensuring continuity of compliance.
To provide practical guidance on the new streamlined requirements, the SFC has updated its Frequently Asked Questions ("FAQs"). Interested parties are advised to refer to the new Question 63A for comprehensive details about the changes. REIT managers are encouraged to seek clarification from relevant case officers if needed.
The new regulations simplify the disclosure requirements by removing the need for REITs to include an updated accountant’s report and valuation report on their properties in secondary offerings. This streamlining reflects the ongoing disclosure obligations already applicable to REITs.
Secondary offerings are defined as the issuance of units subsequent to a REIT's listing on The Stock Exchange of Hong Kong Limited. These offerings may include rights issues and open offers to existing unitholders. The focus of the new regulations is to enhance time-to-market efficiency while maintaining robust disclosure standards.
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