REIT investment conditions mandate real-estate allocation, restrict development exposure, cap concentration, and require corrective action for specified breaches. Regulation 99 requires public-offer REITs to maintain at least 75% of assets in income-producing real estate, restricts development and ... Summary
REIT investment conditions mandate real-estate allocation, restrict development exposure, cap concentration, and require corrective action for specified breaches.
Regulation 99 requires public-offer REITs to maintain at least 75% of assets in income-producing real estate, restricts development and uncompleted-property exposure, limits specified single-issuer or manager exposure, and caps non-permissible revenue. Certain breaches caused by market, tenancy, lease-expiry, or property-sale events must be notified to the trustee and rectified within the prescribed period, subject to possible unitholder-approved extension. Private-placement REITs must maintain at least 80% of asset value in eligible real estate and may invest unutilised funds only in specified permitted instruments.
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