A Case Study Analyzing the Advantages and Disadvantages of Issuing REITs Products

In the period after the government of Taiwan passed the Real Estate Securitization law in 2003, the first of several REITs (Real Estate Investment Trusts), Fubon No. 1, went public in March of 2005. As of May, 2006, four REITs funds have been issued, with a total value of close to NT$400,000,000,000.

Even though the market of REITs in Taiwan is in its early stages, investors are very interested in buying REITs funds, as they show great potential in the market.

This thesis compares American and Japanese experiences of Real Estate Securitization with the Taiwan REITs market, using Fubon No. 1 as the sample for the case study.

From the sample case study, this thesis emphasizes the topics of product design, related laws, fund management, and the issuance and promotion of funds, etc., to develop experience and gain knowledge in this field.

The approach of this thesis is to explore P company’s strategy of first copying another company’s successful experience in issuing REITs, and then uniting the resources and capabilities of their group to design competitive REITs product offerings.

The thesis also analyzes the advantages and disadvantages of issuing REITs in the current marketplace, and the development of effective strategies to choose the appropriate time for issuing these funds.

The underlying purpose of this thesis is to provide a reference for the proprietary that is interested in issuing REITs, or for individuals who are interested in working in this field.