Shin & Kim LLC (Chief Attorney Oh Jong-han) announced on the 26th the launch of a 'Project REITs Task Force (TF).' This is a proactive response to the 'Project REITs' system, which is newly introduced under the amendment to the Real Estate Investment Company Act that passed the National Assembly on the 1st.
Project REITs enable Real Estate Investment Trusts (REITs) to engage not only in real estate investment but also in development and operation. Shin & Kim judged that the introduction of this system would bring fundamental changes in terms of financing real estate development projects, securing stability, and establishing business strategies, prompting the launch of a dedicated TF.
The Shin & Kim Project REITs TF consists of attorneys and experts with practical experience and expertise in alternative real estate investment, project finance, taxes, and public policy. The Head of Team is Lawyer Jang Kyung-soo (32nd Judicial Research and Training Institute), who leads the alternative real estate investment group at Shin & Kim. Other participants include Kim Joong-han, a senior expert who was responsible for REIT-related policy and licensing at the Ministry of Land, Infrastructure and Transport.
The TF plans to focus on comprehensively designing practical implementation plans for Project REITs and building consulting infrastructure to support them.
First, it will review various practical issues that may arise during the establishment and operation stages of Project REITs, and meticulously establish specific structural designs and execution processes, including meeting establishment reporting requirements, setting up in-kind contributions and borrowing structures, and conducting capital increases through third-party allocations. Additionally, they will collect industry opinions on the enactment and amendment of related subordinate regulations and enforcement ordinances for the Act on Real Estate Investment Companies to be prepared for future implementation.
Shin & Kim also plans to hold brown bag meetings and seminars for stakeholders such as developers, construction companies, asset management companies (AMCs), and investors who wish to utilize Project REITs, while providing practical guidelines. They will also provide comprehensive consulting related to tax exemptions applicable to Project REITs.
Lawyer Jang Kyung-soo noted, 'Shin & Kim will establish practical standards for the domestic development-type REIT market through the launch of this TF and lead the institutionalization of the system.'