[SINGAPORE] Singapore real estate investment trusts, or S-Reits, have been experiencing strong equity fundraising (EFR) this year, with the total amount from primary and secondary activities reaching its highest level since 2021.
In the year to date (YTD), around S$4 billion of EFR has been announced by at least 10 S-Reits, exceeding the S$2.9 billion raised in 2024 and the S$1.9 billion in 2023.
Close to half of this year’s funds came from the primary markets, with the initial public offerings of NTT DC Reit and Centurion Accommodation Reit raising US$824.1 million and S$816.1 million, respectively.
Both listings enjoyed healthy investor interest. NTT DC Reit’s offering of 599.9 million units was 4.6 times subscribed, while Centurion Accommodation Reit’s 262.2 million units on offer were 16.6 times subscribed.
In the secondary market, S-Reits have also been active in EFR activities, sustaining their momentum from 2024.
As at Friday (Oct 10), at least eight S-Reits have announced more than S$2.1 billion in private placements and preferential offerings YTD, with the proceeds used mainly to fund acquisitions and reduce debt.
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The larger Reits on the Straits Times Index have led secondary fundraising YTD.
In August, CapitaLand Integrated Commercial Trust (CICT) raised S$600 million through a placement, using part of the proceeds to acquire the remaining interest in mixed-use development CapitaSpring. This was upsized from the original target of S$500 million, and the offering was 4.9 times covered.
CapitaLand Ascendas Reit also issued a private placement in May, raising S$500 million to partially finance the acquisition of two assets – including a Singapore data centre – and pare down debt. The placement was about 4.1 times subscribed, with strong participation from a quality mix of new and existing unitholders, long-only funds, real estate specialists, private wealth and multi-strategy investors.
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Earlier this year, Frasers Centrepoint Trust raised more than S$420 million through a preferential offering and private placement to repay debt and acquire the remainder of Northpoint City mall. The placement was upsized to S$220 million from S$200 million, and the enlarged issuance was around four times covered.
More recently, in September, Keppel DC Reit also announced a preferential offering to raise around S$404.5 million. The bulk of proceeds will be used for an asset acquisition and debt repayment. The new units are expected to be listed on the Singapore Exchange on Oct 22.
Keppel DC Reit is the largest data centre Reit in Asia, while CICT has grown to be the region’s largest Reit.
Keppel Reit , Prime US Reit and Elite UK Reit have also carried out EFR exercises in the year thus far.
S-Reits’ increased fundraising and deal activity coincides with robust growth in real estate investment sales in Singapore as interest rates decline.
Research by Knight Frank Singapore indicated that real estate investment sales in the third quarter rose to S$10.5 billion in total, up 23.8 per cent from S$8.5 billion the year before. CICT’s acquisition of CapitaSpring was the largest transaction in Q3.
Knight Frank expects investment sales activity for the rest of 2025 and early 2026 to remain characterised by government land sales tenders of residential sites and Reit activity, with smaller to mid-tier investments of under S$200 million – especially in accommodation and industrial properties – to continue to feature in the market. SGX RESEARCH
The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.
