SINGAPORE - 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. The mantra that bigger is better will continue to drive capital market activity in the sector, analysts say.
"Reits are going to be a go-to sector for the next year as consolidation will add another reason to buy alongside yields," said Jin Rui Oh, a Singapore-based director at United First Partners. The enlarged entities would get better market value, analyst coverage and potential index inclusion, he added.
M&A JUGGERNAUT In the largest deal this year, CapitaLand spent $6 billion to purchase two real estate units from Temasek Holdings. Analysts at United First and CLSA expect more deals in the coming year, especially among commercial and industrial Reits."They are emboldened by the success," United First's Mr Oh said.
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