Real estate investment trusts (Reits) have become an investment darling in Singapore giving investors attractive returns. But for retailers, Reits are causing them to cough out more in rents. This is because Reits act mainly to boost returns for their shareholders. President of the Singapore Retailers Association (SRA), Jannie Chan, says the higher rentals are adding to the woes in the retail sector...
REITS
Ascendas Real Estate Investment Trust (A-REIT) is acquiring The Galen, a property located in Singapore Science Park II, for S$126 million. The Galen is a six-storey multi-tenanted building, with net lettable area of 21,775 square meters. The building has an occupancy rate of about 97.5 percent. In a statement, A-REIT said it will be granted a land lease of 66 years for the property and expects to...
The increasing use of debt, or leverage, in Singapore Real Estate Investment Trust (S-Reit) funding mixes could pose risks to the sector, said Fitch Ratings. According to a report on the S-Reit sector by the ratings agency, these risks include refinancing risk and exposure to interest-rate shocks. Fitch added that "the competition for assets that results from the use of leverage will put downward...
Ascendas Real Estate Investment Trust (A-Reit) said yesterday it will help fund two industrial property purchases from a private placement worth S$406.4 million. Due to strong demand, it will sell 160 million new units — up from 140 million — to institutional and other investors at S$2.54 per unit, a 3.5 per cent discount from the volume-weighted average price of S$2.6328 on Thursday. The proceeds...
If the stellar performance of Mapletree Greater China Commercial Trust on its trading debut was anything to go by, experts say real estate investment trusts (REITs) will continue to be popular investment vehicles in Singapore. They add that Singapore's strong currency and diversified offerings are among the sector's biggest draws. REITs provide annual returns ranging from 2% to 6% - higher than placing...
Mapletree Greater China Commercial Trust (MGCCT) - Singapore's largest share sale in two years - jumped by as much as 12.4 per cent on its trading debut on Thursday. The REIT, the fourth sponsored by Mapletree Investments, opened at S$1.02 and closed the session at S$1.03 - some 10.7 per cent higher than its initial public offering price of S$0.93 per unit. The REIT was nearly 30 times oversubscribed and...
The initial public offering of Singapore's largest real estate investment trust has been fully snapped up. Units of Mapletree Greater China Commercial Trust is nearly 30 times subscribed at the close of the public offer. The Reit offered a total of about 776.6 million units at 93 cents each, raising some S$1.7 billion. There was strong demand for both the placement and public tranches. And even the...
Overseas Union Enterprise (OUE) is planning to raise up to S$1 billion from the listing of its hospitality assets in Singapore this year, Dow Jones Newswires reported, citing two people with knowledge of the deal. OUE could launch an initial public offering for a hospitality-focused real-estate investment trust (REIT) in the third quarter of the year, the sources said, according to the report. A...
The stage has been set for Singapore's largest initial public offering of a real estate investment trust (REIT). Mapletree Greater China Commercial Trust has locked in a top price of 93 cents a share for its IPO, and it will raise up to S$1.7 billion from the listing. The offering is Singapore's largest IPO in two years, since Hutchison Port Holdings Trust raised US$5.5 billion in March 2011. It is also...
Temasek-owned Mapletree Investments is planning to raise as much as S$1.6 billion in gross proceeds from a planned initial public offering of a Greater China-focused real estate investment trust (REIT). Scheduled to list on the Singapore Exchange on March 7, Mapletree Greater China Commercial Trust could potentially be Singapore's largest initial public offering in two years. In a preliminary prospectus...