Research on real estate investment trust (REIT) as real estate financing for developers: a methodology review of previous study

Abstract Project financing commonly found in Indonesia is conventional project financing, namely financing with own capital and long-term loans with a certain composition. The use of conventional financing often produces an un-optimal and unprofitable cost of capital. Real Estate Investment Trust (REIT) is one of alternative financing that can be applied in global property projects, but the use of this strategy is needed to be further analyzed to be used as a project financing option in Surabaya. The developer companies tend to agree with the development of REIT in Surabaya and also the benefits obtained from the implementation of REIT. However, they are still having doubts about implementing it. The purpose of this study is to examine using REIT as a method of real estate financing for developers. This research is focused on finding the consequences of using REIT from the developer side. Therefore, the literature review method will be carried out.