Closer scrutiny of Reits, trusts IPOs if rates rise

[SINGAPORE] Real estate and business trust offerings may be a harder sell in the coming months, as the market shifts towards expectations of higher interest rates.

While there is still an appetite for the initial public offerings (IPOs) of real estate investment trusts (Reits) and business trusts, interest will become more selective given the overhang of a future reduction in US monetary stimulus.

The quality of sponsors and assets and the growth profile of the trust will be more closely scrutinised, said investment bankers.