In the initial years, when Singapore’s REIT sector took off, master lease agreements or MLAs were a popular way for owners to monetise their assets. Property owners could sell a property into the REIT with a sale-and-leaseback agreement. The lease terms — including rents and weighted average lease expiry — would determine the pricing, which is essentially the value of the property. So the higher the rent and the longer the lease, the higher the valuation. This enabled companies like Vibrant Group and CWT to monetise their properties at higher valuations than they otherwise would have.

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