SINGAPORE (Sept 18): Singapore real estate investment trusts are on a money-raising spree.
Lendlease Global Commercial REIT began taking investor orders on Tuesday for an initial public offering that could raise as much as $740.3 million in what would be Singapore’s third-largest IPO this year.
See: Lendlease eyes Singapore REIT listing at 88 cents a unit; aims to raise $1 bil in total
REITs have raised US$1.63 billion ($2.24 billion) in Singapore IPOs so far this year, the highest since 2013 when first-time share sales by the sector fetched US$2.18 billion, according to data compiled by Bloomberg.
REITs also account for the bulk of all IPOs that have taken place in Singapore in 2019, representing 97% of all fundraising, the data show.
Trusts have been taking advantage of high stock prices to conduct IPOs and additional share sales, while investors are shopping for yield in a low interest rate environment.
The FTSE Straits Times Real Estate Investment Trust Index has risen 17.9% this year and is trading close to a one-year high, making it a good time to sell equity.
The largest REIT IPO in Singapore this year was the US$612 million listing by Prime US REIT, followed by Eagle Hospitality Trust’s US$451 million offering.
