, Singapore

REITs' M&A deal value hits record-high at $23.11b in 2019

This is triple the former peak in 2014.

Underpinned by a global hunt for yield, Singapore’s real estate investment trusts are having a bumper year in deal-making as well as fundraising, according to Bloomberg. The mantra that bigger is better will continue to drive capital market activity in the sector, analysts say.

Singapore-listed REITs have forked out $23.11b (US$16.9b) to purchase assets this year, already triple the previous peak reached in 2014. The sector has also raised a record amount in follow-on share sales, riding an 18% gain in the FTSE Singapore REIT Index, which is more than four times the rise in the broad benchmark in the city-state.

The mergers and acquisitions have created some of the largest REITs in the region. The allure of being big: the entity would find it easier to get a place in global benchmarks and portfolios, raise funds for expansion and tackle competition.

Read more in Bloomberg.

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