Singapore government fund boosting REIT investments in Japan - report

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TOKYO, Feb 07, 2008 (Thomson Financial via COMTEX) -- TYTMF | news | PowerRating | PR Charts -- The Government of Singapore Investment Corp (GIC), a sovereign wealth fund run by the government of Singapore, is stepping up purchases of real estate investment trusts (REITs) in Japan, the Nikkei reported on Thursday without citing sources.

GIC owns 5 percent of Japan Prime Realty Investment Corp, a REIT affiliated with Tokyo Tatemono Co, the business newspaper said.

The Singaporean government fund has also bought 3.47 percent of Japan Retail Fund Investment Corp.

The move comes as REIT dividend yields are now averaging about 5 percent, while long-term rates are hovering near 1.4 percent, making REITs attractive investments.

GIC is raising its presence in Japan not only via REIT investments but also by directly acquiring properties, including the planned purchase of the Westin Tokyo luxury hotel.

(1 US dollar = 106.60 yen)

yasuhiko.seki@thomson.com

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