https://sgxmoatinvesting.blogspot.com/
https://sbr.com.sg/aviation/in-focus/could-airport-reit-finance-singapores-massive-infrastructure-ambitions

Advantages
1. Inject life and vibrancy into SGX REIT markets. SGX already has a strong stable of REITS  and business trusts. An airport REIT will be something new and innovative (I don' t think there is an airport REIT anywhere in the world yet, but I could be wrong). With the right marketing, this will attract excellent  publicity for SGX market and attract foreign capital into the local market.

2. In all fairness, Malaysia was the one who proposed this idea first and that is probably how the Maybank analyst picked it up and raise it in his/ her report. To throw a spanner at Malaysia' s plan (and LKY' s pal Mr. Mahatier), Singapore should set this up first to secure first mover advantage and the publicity and marketing that comes with the first mover advantage. This sounds better the more I think about it... I don' t think any airports in Malaysia can match up to the cashflow generated by Changi so a Changi REIT may make more sense in terms of being the pioneer in this new asset class.

  3. Changi Airport has been consistently ranked one of the best airports in the world. Having a REIT based on Changi Airport can further burnish Changi' s reputation. As mentioned in the various articles, the REIT can also help to finance Changi' s expansion. This will reduce the burden of taxpayers to finance the expansion which is necessary (and require huge capital investment) to keep up with the competition from the various airports in Asia (Bangkok, HK, Chinese airports etc.)

4. There is a strong talent pool in the Singapore market that can support the REIT market. An airport REIT is obviously something new (but complementary) and being the pioneer can create jobs and expertise.

5. SGX can also be the platform for the exchange of choice for similar airport REITS. The aviation industry as a whole is expanding rapidly across Asia. This requires large capital investments and REITS can be an instrument to attract fundings.

6. Airport terminals and operations are not dissimilar to utilities in that they serve a relatively captive market and have high barrier to entry. The operating cashflows  are relatively stable (and can be projected fairly easily) and is a natural fit for REIT investors who value consistent dividends payout.

How feasible?
1. Airports are important infrastructure for every country. Operationally, there are bound to be lots of teething problems before a private company can take over the operations of the airports from a government entity e.g. security concerns, customs operations, supporting of national carriers etc. If the airport REIT comprises solely of the shopping malls in the airport, then that will not be very attractive at all.

2. As a citizen and in all honesty, I would prefer the government to maintain control over the airport. Look at SMRT' s case, the government has to step in and privatize (through Temasek) the rail operations after numerous operational mishaps. The airport is a  critical component of Singapore' s economic infrastructure and needs to be well run as a crucial cog in the economy.

3. Who is going to be sponsor of the REIT? Temasek or Temasek-linked companies? This is going to take lots of corporate  manoeuvre  to make it work. I suspect a privatised airport (via the REIT structure) will not be to the advantage of SIA, SATS, ST Engineering etc. as it may lead to higher airport fees and pressure on vendors to reduce pricing. Will be good for these companies to have a stake in the airport REIT to mitigate this effect.

4. On the realms of dreams, how about doing something similar to a Singtel privatisation? Giving shares to all Singaporeans so that everyone benefits? This will be a real budget sweetener and votes winner. This can ensure high retail interests though I will want some foreign capital in the airport REIT as well so that this can truly be an international REIT.