At least five more real estate investment trusts (Reits) could be making their entry onto the Singapore stock exchange in the next six months, which could possibly raise an average of $500 million each.
More dual listings might also be seen, after several firms from China upgraded their guidelines for the sector, said Eng Seat Moey, managing director and head of asset-backed structured products at DBS.
Ms. Eng’s unit is part of DBS’s capital markets team which helps Reits with listings on the SGX and secondary fundraising exercises.
“You can expect a lot more initial public offerings (IPOs),” she said. “There are a number of Singapore sponsors who wanted to launch a Reit but couldn’t do it because of the market … Conditions were just not right in the last two years.”
“You will also see a number of cross-border Reits which we hope to bring to the market, first quarter or first half next year,” she added.
According to DBS, the property trust market in the country comprises 24 business trusts and Reits, with a market capitalisation of about US$36 billion. New entrants in the Singapore stock exchange this year include Mapletree Industrial Trust and Cache Logistics Trust. DBS was involved in both deals.