S-REIT Property Purchases

S-REIT Property Purchases Surpassed S$12bil Last Year

SINGAPORE – Singapore-listed real estate investment trusts (S-REITs) announced asset acquisitions valued at over S$15.3 billion and with more than S$12.7 billion in overall purchase price consideration for the whole of 2021, reported The Business Times on Sunday afternoon (9 January, SGT).

In particular, Mapletree Logistics Trust was the most active S-REIT in terms of asset acquisitions last year to the tune of more than S$2.2 billion. This is followed by Ascott Residence Trust (S$780 million) and Ascendas India Trust (S$400 million).

For December 2021, S-Reits that announced asset acquisitions include Ascott Residence Trust, CapitaLand Integrated Commercial Trust and ParkwayLife Reit. Their real estate acquisitions for the said month totalled roughly S$1.2 billion in purchase consideration.

These trusts bought assets across a variety of segments, office space, retail units, nursing homes, and student accommodations.

Notably, CapitaLand Integrated Commercial Trust announced last month that it is purchasing a half-stake in an office and retail development at 101 – 103 Miller Street and Greenwood Plaza in North Sydney for S$409.3 million.

The same trust is also buying 2 Grade A office buildings in Sydney – 66 Goulburn Street and 100 Arthur Street, for a total of S$330.7 million, but the commercial properties have an appraised value of S$672 million.

Meanwhile, the benchmark iEdge S-Reit Index generated 6.2 percent in overall returns, while the S-REIT and real estate trusts sector as a whole obtained S$1.4 billion in net retail inflows, whereas institutional investors have recorded net outflows of S$1.0 billion.

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