The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Reit mergers gather pace in Singapore

OUE real-estate investment trust (Reit) merger follows Viva-ESR; hope is to create better liquidity in stocks.

singapore-raffles-place-780

Singapore's financial centre, Raffles Place



There’s not a whole lot for investment banks to do in Singapore these days: very few new listings, tech companies who are quite content with private market funding, local debt markets that are strong, but somewhat commoditized.

However, there is a new game in town: Reit mergers.

On Singapore’s somewhat illiquid and listing-starved stock market, Reits have long been a mainstay of volumes.

There are 42 Reits and property trusts in Singapore, which have a combined market capitalization of S$90 billion at the end of 2018, representing 8% of total market capitalization, making it the biggest such market in ex-Japan Asia.

But here, too, there are challenges. Most of the obvious real estate you can see on the Singapore skyline is already securitized. Singaporean investors have gone right off trusts that hold questionable emerging-market assets.

In recent years, the best chance has been to build Reits filled with European and US property, and list them in Singapore; more than 75% of Reits here own property outside Singapore. In fact, there are only eight that don’t.

To bolster the sector, Singapore has sought to consolidate some of its existing Reits to give them greater heft and, crucially, liquidity.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree