UI Boustead Reit lodges IPO prospectus, raising S$1.2 billion at S$0.88 per unit
Its initial portfolio will comprise 23 properties with a total net leasable area of 5.3 million sq ft
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[SINGAPORE] UI Boustead Real Estate Investment Trust (Reit) lodged an initial public offering (IPO) prospectus on Thursday (Feb 26), as it seeks to raise S$1.2 billion at S$0.88 per unit.
Cornerstone investors in the Reit include Amova Asset Management, AMundi, JP Morgan Asset Management and Jumbo Group. Other notable names include Lian Beng chairman Ong Pang Aik and Boustead CEO Wong Fong Fui.
UI Boustead Reit’s initial portfolio will comprise 23 properties, including 21 leasehold properties in Singapore and two freehold properties in Japan. These have a total gross floor area of 5.9 million square feet and a net leasable area of 5.3 million sq ft. The Singapore properties include Razer’s headquarters here.
As at Sep 30, 2025, the agreed property value of the portfolio was about S$1.9 billion. The total transaction price payable by the Reit for the portfolio is about S$1.12 billion.
The portfolio is “diversified across property types”, including logistics, business space, high-specification industrial and general industrial properties. The portfolio’s weighted average lease expiry stands at 5.8 years, and it had a committed occupancy rate of 89.4 per cent as at Sep 30, 2025.
Pro forma consolidated financial information showed that UI Boustead Reit’s revenue fell to S$99.3 million for the year ended Mar 31, 2025, from S$100.7 million a year earlier. Revenue for FY2023 was S$95 million.
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Net property income for FY2025 came in at S$77.1 million, down from S$79.3 million in FY2024, which followed S$74 million the previous year.
UI Boustead Reit’s sponsor is UIB, which was formed through United Industrial’s acquisition of Boustead’s fund and property management business on Mar 12, 2025. The sponsor has total assets under management of about US$4 billion across 82 assets.
UIB is focused on Singapore and Japan, and intends to target opportunities in high-growth sectors, logistics and data centres.
The Reit offers a distribution yield of 7.4 per cent forecast for the two-month period from Feb 1 to Mar 31 on an annualised basis, and 7.8 per cent projected for the year from Apr 1, 2026, to Mar 31, 2027.
UI Boustead Reit is expected to deliver a total return of 12.2 per cent from organic growth alone.
Organic growth will be driven by contractual rental escalations and property expense pass-throughs on some leases, positive rental reversion opportunities and higher occupancies.
UI Boustead Reit has an acquisition pipeline of about 19.6 million sq ft, and will have access to value-accretive co-development opportunities via its sponsor.
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