“We are constructive on the equity capital markets in Singapore for the fourth quarter and onwards,” said Mrinal Parekh, head of equity capital markets for Southeast Asia and India at BNP Paribas. He said investors have already started asking questions about REITs.
Singapore’s stagnant initial public offering market is relying on a boost next year from real estate investment trusts.
Japan’s Nippon Telegraph & Telephone Corp. is considering a data-center REIT listing that could be worth as much as US$1 billion ($1.28 billion) and bankers are optimistic other REIT managers will follow, in part because of the recent rally in the sector. An index for Singapore-based real estate trusts has risen 14% during the third quarter, coming close to wiping out losses from earlier in the year, as a global decline in interest rates makes the sector more attractive to investors.
