UI Boustead REIT has launched what will be this year's largest IPO, aiming to sell units worth $973.6 million at 88 cents each.
This latest REIT to list on SGX has a portfolio value of $1.9 billion and comprises of 23 properties in the logistics, industrial, and business space in Singapore and Japan.
The REIT aims to deliver a total return of 12.2% from organic growth, which comprises a distribution yield of 7.4% for the forecast period 2026 and DPU growth of 4.8% between 2026 and 2027. The organic DPU growth is driven by built-in rental escalations, occupancy uplift and rental reversions.
The offer of nearly 677.2 million units in total consists of the international placement tranche of around 643.3 million units, and a retail tranche of 33.9 million units.
In addition, there are 18 cornerstone investors who are taking up a total of nearly 429.2 million units.
The offer opens on March 5 and will close at noon on March 10. Trading will begin at 2 pm on March 12.
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“The commitment we have received from cornerstone investors is a clear endorsement of the quality of our portfolio and long-term growth prospects," says Tan Shu Lin, CEO of the manager.
"UI Boustead REIT’s portfolio serves tenants in the high-technology, value-add and innovative sectors which are expected to continue to expand on the back of robust structural demand.
"In addition, there is a visible pipeline to grow the IPO portfolio that includes asset enhancement initiatives, acquisitions and co-development opportunities. UI Boustead REIT will adopt a prudent capital management approach to deliver sustainable long-term growth to unitholders," she adds.
Financial institutions involved in this issue in various capacities include DBS, UOB, Citigroup, CGS International, Goldman Sachs and Maybank Securities.
