Secondary fundraisings portfolio acquisitions continue into 2021

S-REITs raised a total of S$4.5 billion in secondary fundraisings for the entire year in 2020, of which S$3.0 billion was raised through placements and another S$1.5 billion in rights issues.

Secondary fundraising activities were largely undertaken to fund portfolio acquisitions in the second half of 2020, despite the novel coronavirus pandemic. Three of the largest secondary fundraisings were by Ascendas Reit, Frasers Centrepoint Trust and Mapletree Logistics Trust totalling over S$3.0 billion in rights and placements.

Ascendas Reit's proceeds from the November 2020 fundraising will fund acquisitions of two office properties in San Francisco, a portfolio of data centres in Europe (proposed), as well as a suburban office property in Sydney, Australia.

The acquisitions are expected to deepen and diversify the Reit's exposure to US technology cities and offer immediate exposure to Tier 1 data- centre hubs across Europe.

Frasers Centrepoint Trust raised over S$1.33 billion in September 2020, of which the majority was used to acquire AsiaRetail Fund which owns a portfolio of five suburban retail malls in Singapore including Tiong Bahru Plaza, White Sands, Hougang mall, Century Square and Tampines 1, as well as one office property Central Plaza, totalling over S$3.1 billion in agreed property value.

Mapletree Logistics Trust's fundraising in October 2020 has funded the Reit's regional acquisitions.

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The Reit acquired 100 per cent interest in seven properties and the remaining 50 per cent interest in 15 properties in China, as well as a property in Vietnam.

In addition to secondary fundraisings, healthy balance sheets combined with low interest rates also saw a number of acquisitions which were not funded in the secondary market.

A recent example, CapitaLand Retail China Trust announced the completion of the proposed acquisition of a company which holds the Ascendas Xinsu portfolio.

The portfolio comprises six locations with 61 buildings including business parks and an industrial portion, which is located in Suzhou Industrial Park, China.

Throughout 2020, S-Reits averaged a daily turnover of more than S$300 million, representing 24 per cent of the combined daily turnover of all stocks listed on the exchange, excluding products such as Exchange Traded Funds and Daily Leveraged Certificates.

The sector received S$1.2 billion in net retail inflows in 2020, with net institutional outflows of S$340 million. Retail investors were net buyers of the sector after February 2020, following net retail outflows of S$72 million in the first two months of 2020. SGX RESEARCH

• For more research and information on Singapore's Reit sector, visit sgx.com/research-education/sectors for the monthly S-Reits & Property Trusts Chartbook.
• Source: SGX Research S-Reits & Property Trusts Chartbook, data as at Jan 15, 2021.