Latest news with #IPCs
CNA
03-06-2025
- Business
- CNA
Some arts groups becoming not-for-profit entities to encourage more donations
SINGAPORE: More arts groups in Singapore have been turning into Institutions of Public Character (IPCs) in recent years, which gives tax benefits to their donors. Between 2019 and 2023, the number of arts groups doing so rose from 75 to 88 — a nearly 20 per cent increase, according to the Commissioner of Charities annual reports. IPCs are required to conduct activities that exclusively benefit the local community. This not-for-profit status could spur more donations, said observers. INCREASE IN SUPPORT The Siong Leng Musical Association, for example, applied for IPC status in 2022 after gaining more recognition over the years. The arts group was established in 1941 to preserve and promote Nanyin, an ancient Southern Chinese music form. Siong Leng's donors can receive a 250 per cent tax deduction with its IPC status, making it more appealing to donate to the group. Ms Lim Ming Yi, outreach manager and artist at Siong Leng, said 'Through this, we hope that it opens more doors for us, more opportunities and also helps us establish better credibility and accountability, for existing and future organisations and individuals who may be more inclined to donate to us because of tax deduction benefits.' Since then, the group has seen an estimated 50 per cent increase in support. 'We were able to pull more into our education and outreach initiatives locally and abroad, for overseas exchanges as well,' said Ms Lim. 'Other than that, I think being an IPC company also signals a level of transparency and governance, which can reassure existing and future stakeholders.' But attaining this status is no easy feat. Paper Monkey Theatre, a puppet theatre company, said it had to hire an accountant and a lawyer to meet compliance requirements. These additional services cost around S$20,000 (US$15,500), but such expenses were covered by the Sustain the Arts (stART) Fund by the National Arts Council. Mr Vincent Ong, general manager of the Paper Monkey Theatre, said the council encouraged the company to apply for the IPC status to rebrand itself. 'Before (that), our donation yearly actually came up to only about S$6,000,' he said. 'But ever since we got the status, there (has been) a 200 per cent jump in the donations,' he noted, adding that the IPC status has helped it to attract donations from more corporates. 'So we get probably about S$16,000 to S$18,000 a year of donations, and that has helped us a lot.' GROWING THEIR CRAFT One benefit of being an arts IPC is that organisations with the status can apply for the Cultural Matching Fund (CMF), which gives a dollar-for-dollar boost to receive donations. This gives companies more means to improve and grow their craft, which also translates to more room for creativity. Since 2014, more than S$400 million of the CMF has been disbursed. Yet for the Paper Monkey Theatre, the funds raised may not be enough to sustain yearly programmes. Its costs can go as high as five times its total donations, largely due to maintenance and professional fees. Other IPCs such as Art Outreach Singapore, which focuses on the visual arts, have taken a different approach. It has turned to other means of income such as more commercial projects. While the earnings are not viable for the CMF top-up, they ensure a diverse stream of revenue for its programmes. 'We can hire artists to help paint a mural, help with workshops, help with a brand activation,' said Ms Mae Anderson, chairman of Art Outreach Singapore. 'We get to help artists not just get the work, but help artists professionalise themselves,' she added. 'So I think this is something that is a lot more fruitful for the system where we get a little bit of fee, the artists get the work, and the corporates get to do more with art.' Ms Anderson said she is looking forward to more collaboration and peer learning among arts groups, so they can share best practices and grow stronger together in their journey as IPCs.
News18
29-04-2025
- Business
- News18
SM REITs Explained: A Beginner's Guide To Small And Medium REITs
REITs made commercial real estate accessible to Indian retail investors in 2019. In 2024, SEBI introduced SM REITs with a lower ticket size of Rs 10 lakhs for targeted investments. Commercial real estate as an asset class was out of reach for retail investors for the longest time. This changed with the introduction of REITs in India in 2019 and it has quickly become a popular investment option for people looking to diversify their portfolios. With the introduction of Small and Medium REITs (SM REITs) in 2024, investors now have a more targeted and asset-focused way to invest in this asset class. SM REITs allow investors to focus on specific income-generating properties unlike traditional REITs, which pool funds to invest in a diverse portfolio of real estate. This more tailored approach offers investors greater customisation and control over their real estate investments without the hassle of directly owning a property. The Securities and Exchange Board of India (SEBI) laid the groundwork for SM REITs with a consultation paper released in 2023, followed by the final regulations in March 2024. These regulations have widened the access to commercial real estate investments with a significantly lower ticket size of ₹10 lakhs – far more affordable than direct commercial real estate investments, which typically start upwards of ₹20–30 crores. While SM REITs offer a new avenue for investment, there are some key factors which the investors can consider before adding them to their portfolio. Location is often the most critical aspect of any real estate investment. Prime commercial assets in well-connected, infrastructure-rich areas of major cities tend to perform better. High occupancy rates in these areas signal strong demand, ensuring that vacancies are quickly filled if a tenant leaves. Understanding the supply and demand balance in the target location is essential. If the supply of commercial spaces outpaces demand in a particular micro-market, vacancy rates can increase, putting downward pressure on rental rates. Reports from leading international property consultants (IPCs) like JLL, CBRE, and Knight Frank provide valuable insights into these trends. High-quality assets tend to attract high-quality tenants. Grade A properties—those with premium design, high-end amenities, LEED or IGBC certifications, and developed by top-tier builders—are more likely to retain tenants. Whenever possible, investors should visit the asset in person to assess both the property and its location. SM REITs can target different property types, including office spaces, retail outlets, and hospitality assets. Understanding the economic factors driving each asset class is essential. For instance, India's office space demand has been fueled by the outsourcing sector, while retail demand stems from domestic consumption growth. Tenant profile Grade A tenants, such as Fortune 1000 companies and leading Indian firms, are desirable since they typically make substantial investments in their office spaces, including customized layouts and fit-outs. Multinational tenants are also preferred for their financial stability and reliable rental payments. Commercial leases typically feature a lock-in period for tenants (usually 3–5 years), whereas landlords are locked in for the full lease duration (typically 5–9 years). Investors should prioritize SM REITs with a remaining lock-in period of at least 2–3 years or those with a medium-to-long-term residual lease tenure. An experienced and capable management team is critical to the success of an SM REIT. Investors should research the team's track record in managing, acquiring, and exiting real estate investments. A seasoned team increases the likelihood of delivering strong returns and effective asset management. How To Invest In An SM REIT? New SM REIT schemes are listed on the stock exchanges through an Initial Public Offering (IPO). Investors can subscribe to units of these schemes during the IPO process, similar to equity IPOs. Applications will be enabled via the ASBA mechanism and investors can apply via any of the following ways: • Apply online through the Internet Banking facilities of all the SCSBs (Self-Certified Syndicate Banks) • Apply online via your ASBA enabled brokerage accounts (e.g. ICICI Direct) • Submit physical bid cum application form at your ASBA bank/branch where you would have your bank account • Download the e-form from BSE and submit at your ASBA bank/branch For schemes that are already listed, investors can trade them on the stock exchange through their demat accounts. Conclusion Institutional investors have been big investors in REIT products and have also demonstrated significant interest by participating in SM REIT listings. With its inherent nature, SM REIT is an investment product that is well positioned in every investor's portfolio due to its superior risk-return dynamics. By thoroughly evaluating the factors such as location, asset quality, lease structure, and management strength, investors can align their SM REIT choices with their financial goals and risk appetite, ensuring a well-balanced and strategic real estate investment. top videos View all It is authored by Ganesh Arunachalam, Vice President – Investments, Property Share The views expressed in this article are those of the author and do not represent the stand of this publication. First Published:
