The Study of Real Estate Securitization

• Main Authors: Hui-Hao Lu, 盧惠豪
• Other Authors: Dr.Wi-Kun Li
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/23983644029748297451

碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 98 === In order to solve the predicament of traditional real estate investment, real estate securitization offers a new scheme by turning its investment nature from fixed asset into financial asset. However, after real estate securitization law has been implemented in Taiwan, what is the feasibility of this system and how is it embraced by the market will be the key to success for this system. Real estate securitization, by definition, is the securitization of the ownership of, or the creditor,s entitlement to a debt over, a real estate property. This financing mechanism alters the investor,s investment, from a direct investment to a securitized investment. In doing so, the relationship between the investor and the invested property also changes from direct ownership of the property itself to indirect ownership of a securitized interest over the property. Likewise, the value of the investment also changes from that of a fixed asset to that of a liquid asset. Real estate securitization, therefore, enables the real estate industry to utilize the funds raised from the general public purchasing the security from real estate developers or asset management corporations, for undertaking further property development, managing or disposing of the real estate property in an efficient and effective manner. Real estate securitization has been in practice in the United States and Japan for many years.In the Real estate securitization of Taiwan, the Real Estate Investment Trust system is patterned after the Real Estate Investment Trust system of U.S.A； and the Real Estate Asset Trust system generally follows the Land Trust system of Japan. The main purpose of this study is not only investigating the regulation and practical experience of Real estate securitization in U.S. and Japan but also further discusses its current progress and future promotion in Taiwan. In the meantime I am hoping this study can offer any concerning proposition for related regulation and corresponding policy also expecting it to contribute further development to Real estate securitization in Taiwan.