Industrial S-Reits flex buying power, in signal of their counter-cyclical strength

DESPITE concerns over surging inflation and interest rates, acquisitions by Singapore-listed Real estate investment trusts (S-Reits) – led by those in the industrial space – are bolstering sentiment that the worst could soon be over for this segment of the local market.

The deals announced may also be an indication of where investors should focus their attention as the S-Reit market falters.

ESR-Logos Reit on Aug 29 announced the proposed acquisition of a 5-storey modern logistics asset in Japan for a purchase consideration of 17.8 billion yen (S$183.5 million), inclusive of rental support.