MARKETS & INVESTING | Staff Reporter, Singapore

Chart of the Day: Residential and business trusts dominated follow-on funds in 2017

REITs and BTs raised $2.43b.

This chart from PwC shows that follow-on (FO) performance in Singapore was dominated by REITs and BTs, accounting for 81% of the total raised in 2017.

A total of 30 follow-ons (FO) raised combined gross proceeds of approximately $3b.

REITs and BTs raised $2.43b from FO funds alone. The transportation sector followed by $209.6m, or 7%.

Meanwhile, real estate management and development FOs raised $122.2m, construction and engineering FOs raised $58.1m, and media FOs bagged $50m.

Most of the funds raised by these REITs and BTs are expected to be used for the acquisition of new assets and the repayment of existing borrowings.

"In addition, rising interest rates are also causing debt financing to become increasingly expensive. It is therefore not surprising that real estate players are tapping on the equity market to finance new acquisitions and pare down their borrowings level," PwC said.

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