Singapore’s property trust initial public offerings have surged to a six-year high since this year, Bloomberg has reported.
Among the island country’s recent money-raising spree, Lendlease Global Commercial REIT began taking investor orders on Tuesday for an initial public offering that could raise up to S$740 million in what would be Singapore’s third-largest IPO this year.
The largest REIT IPO in Singapore this year was the $612 million listing by Prime US REIT, followed by Eagle Hospitality Trust’s $451 million offering.
Trusts have been taking advantage of high stock prices to conduct IPOs and additional share sales, while investors are shopping for yield in a low-interest rate environment.
The FTSE Straits Times Real Estate Investment Trust Index has risen 17.9% this year and is trading close to a one-year high, making it a good time to sell equity, the Bloomberg says.
