The Wealth Effects of Securitising Commercial Real Estate: A Case on Raffles Holdings, Singapore
Author/s: Joseph Ooi, Liow Kim Hiang, Linda Tay
Date Published: 1/03/2003
Published in: Volume 9 - 2003 Issue 1 (pages 13 - 27)
Abstract
This paper examines the impact of property securitisation on the corporate wealth of a major hotel company. Using the case example of Raffles Holdings, a leading hotel group in Singapore, the study shows that the securitisation of a real estate asset significantly improves the financial position of the company in terms of its gearing ratio, earnings per share (EPS), economic value added (EVA), and stock price performance. In addition, securitisation may be the only viable route for asset divestment for property owners in a depressed property market.Download Full Article
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Keywords
Eva - Real Estate Securitisation - Wealth CreationReferences
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