Size and sponsor matter for investors in new S-Reit listings, say observers
One analyst notes that many are wary of locally listed Reits with foreign assets, due to higher cost of capital and potential market downturn difficulties
Industry watchers are “cautiously optimistic” about the prospect of new real estate investment trust (Reit) listings on the Singapore bourse, noting that these additions will add diversity and variety to the Reit market here.
However, the new listings will need to have at least S$1 billion in market capitalisation and be sponsored by an entity with a good track record to generate investor interest, they added.
Several Reits are expected to list on the Singapore Exchange (SGX) this year. Japan’s Nippon Telegraph & Telephone (NTT) is said to be mulling the listing of a data centre Reit, while French property asset manager Praemia Reim is considering listing a healthcare Reit, media reports indicated.
Centurion Corporation also announced in January that it was exploring the establishment of a Reit comprising some of its worker and student accommodation assets on the SGX mainboard.
Size and sponsor
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