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Additional share sales have totalled $2.3 billion (S$3.1 billion) this year, the highest since 1999.
Rising investor demand has pushed the fund-raising activities of Singapore REITs to record levels, reported Bloomberg.
REITs are becoming popular among Asian yield-hungry investors as central easing has thrust interest rates to low levels internationally. In fact, additional share sales have totalled $2.3 billion (S$3.1 billion) this year, the highest since 1999.
Lendlease Global Commercial REIT made a successful debut in Singapore last month, rising 6.3 percent at the open from its offer price, the biggest leap among the country’s REITs for the past six years. Investors placed orders for more than 9.8 times the offered shares.
On the other hand, Mapletree Commercial Trust declared its private placement was estimated to be 7 times covered, emphasising the strong demand.
Keppel Pacific Oak U.S. REIT, meanwhile, recently launched a private placement of up to $75.6 million (S$103 million), following Mapletree Commercial Trust’s raising of $671.4 million (S$918.5 million) via a preferential offering and a private placement.
Loh Boon Chye, Singapore Exchange Ltd. CEO, said the REIT sector was the highest institutional net buy for this year’s first eight months, drawing inflows of S$211 million.
The performance of Singapore REITs’ follow-on offerings has also shown strength, with only CapitaLand Commercial Trust trading below its offer price. Deals this year have returned 9.2 percent, with initial public offerings amounting to $1.59 billion (S$2.1 billion).
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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