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Australian REIT Essay

698 Words3 Pages

The Australia REIT is means of Australian Real Estate Investment Trust (A-REIT) market has a history dating to 1971, firstly REIT was listed on the Australian Stock Exchange (ASX). Nowadays, the Australia REIT is very vast, easily built and sophisticated with approximately 70% of Australian investment grade properties securitized.An Australian REIT are trusting that can be listed or unlisted, usually are listed on the stock exchange as the Australian Stock Exchange (ASX).The legal course of Australian REIT there are no specific REIT rules. In general, for corporate form in an Australian REIT is trust governed by general trust law. Generally, trust law includes requirements for the legal guardian to act in the best interests of beneficiaries, to act honestly and to exercise the same prudence and diligence as an average person would do in carrying on their job. An Australian REIT usually owns a portfolio of large properties, which, due to their size and value, cannot be bought by the average private investor. Thus, these heavy investments are split up into units of smaller value that can be bought by private investors, who become unit holders.As of July 2012 the Australian public real estate sector consists of a total market capitalization of approximately €72 billion, …show more content…

Using monthly return data, compiles over a ten-year period from 2004 until 2014, this project papers the entitles “Is there some diversification benefits from including physical and securitized real estate into a portfolio of stocks and bonds?”. Thither are many researchers have spoken around the benefits of diversification of stocks and bonds. Nevertheless, the benefits of diversification of real estate have not been studying too intensely. The carnal knowledge of strategy between those two researches that we desire to examine this

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