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The regional real estate investment trust craze has finally sired a pan-Asian Reit, driven from Australia, and to be listed in Singapore. Despite its billing however, Allco Commercial Reit currently boasts just three assets: an office tower and shopping mall in Singapore, a stake in an office in Perth and a minority stake in an existing Australian property fund managed by the same group. That hardly qualifies for the title pan-Asian Reit but the proposed $300 million plus proceeds will certainly provide the capital to acquire more properties. The key to the success of the deal will therefore be whether investors believe the deal’s sponsor, Allco Finance Group, has the ability to find and close sufficient deals to warrant the fund’s pan-Asian billing.

“Oh, these are among the most toxic instruments we’ve created. And they’re absolutely a bull market instrument. In a bear market, it’s not a question of maybe losing just a percentage point. You can lose 10 points in a heartbeat.”

Driven by pension funds desperate to meet their investment allocations to real estate, private equity firms are buying up US real estate investment trusts as fast as they can. And with cheap and plentiful debt at their disposal, they’re happy to pay large premiums too. Kathryn Tully reports.

Gulf of credibility baulks Aussie banker: Australian banker attempts to avoid jail time and earn enough to repay embezzled funds by taking a position at the National Bank of Kuwait.

Research shows an increase in abnormal stock trading in the UK despite recent FSA clampdown. Some of the irregular share price movements may be indicators of insider trading.

Deutsche Bank has hired from a private equity firm to expand its presence in the rapidly growing real estate, gaming and lodging sector in Asia. The bank has hired Matthew Mrozinski from Colony Capital, the private equity firm that specializes in real estate investments. There, Mrozinski was vice-president of acquisition and head of Asia-Pacific capital formation. In this newly created role at Deutsche, Mrozinski will report to the bank’s head of M&A for Asia, Douglas Morton, but will also be responsible for the financings of real estate deals.

Venezuela’s president is planning to buy assets in Uruguay, according to the local media. Hugo Chávez is considering investing in Pluna, a small Uruguayan airline, through a state-owned Venezuelan airline. Conviasa is mulling over buying Brazilian airline Varig’s 49% stake in the Uruguayan outfit.

Further reformis essential if the region’s stock exchanges are to come under the steadying influence of institutional investors.

Freddie Mac’s new treasurer, Tim Bitsberger, marks a break with agency tradition in being an outsider. But he reckons his US Treasury experience can only enhance Freddie’s transparent approach to raising money and its stringent risk management standards. Bitsberger’s hope is that these will serve it well as it builds out its retained portfolio again. Kathryn Tully reports.

WaMu for covered bonds