Abstract:
This article is a first attempt at systematically considering the environmental impact of the real estate investment trust (“REIT”) legal framework in Singapore. It begins with an overview of the existing regulatory framework for promoting “green” property development and management. While there are mandatory standards that property developers and managers must comply with, these only set the minimum requirements for selected aspects of a development’s environmental performance, and aside from some new financial incentives, property developers and managers are merely encouraged to voluntarily strive to go beyond what is legally required. On the other hand, an examination of the legal framework in which REITs operate suggests that it produces strong disincentives towards green property development and management. Recognising that REITs are likely to emerge as a significant property investment vehicle, there may be a need to consider measures to counteract these inadvertent potentially adverse environmental effects.