DBS Bank leads REIT underwriting

DBS Bank said it continues to be the leading underwriter of Singapore-listed real-estate investment trusts (REITs).

The bank said it is leading the pack with a 30.2 per cent market share so far this year.

Citigroup is second with a 22.9 per cent market share, followed by Standard Chartered Bank, which has garnered an 18.1 per cent share in REIT underwriting this year.

DBS has underwritten about S$2.2 billion of REIT deals year to date, including initial public offerings (IPOs) and secondary equity fund-raisings.

Looking ahead, DBS is sanguine on Singapore’s REIT market.

Eng-Kwok Seat Moey, head of asset-backed structured products in the bank’s capital markets group, expects five more medium-sized REIT IPOs next year.

Medium-sized REITs typically have a deal size of about $500 million, she said.

She added that hospitality and commercial REITs should see a pick-up in dividend yields, driven by more acquisitions and rental revisions.

The average dividend yield for Singapore-listed REITs currently stands at 6 to 7 per cent.

Source : Channel NewsAsia – 1 Nov 2010

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