Keeping Singapore's status as Asia-Pacific's global Reit hub

SINGAPORE is often dubbed one of Asia-Pacific's largest real estate investment trust (Reit) platforms. With the successful listing of 2 new Reits in November and December 2021, there are currently 44 Singapore-listed Reits and property trusts (S-Reits) with a combined market capitalisation of over S$110 billion.

Historically, 1 unique aspect of the S-Reit market has been the dominance of cross-border listings. In contrast to other Asia-Pacific jurisdictions which have predominantly local assets, over 85 per cent of S-Reits have overseas assets: an overall 45 per cent of their combined portfolio value consists of assets outside Singapore. The 2 Reits listed in 2021 also have overseas sponsors, and all their properties are located outside Singapore, further cementing the unique cross-border characteristic of our Reit market.

By most measures, Singapore continues to maintain its leadership as a Reit hub for global sponsors and investors. However, with 11 other Asia-Pacific markets continuing their rapid rise, industry stakeholders are beginning to wonder if Singapore will be able to maintain its success. Specifically, there are some concerns as to whether future sponsors with assets in their local markets would demonstrate a stronger preference for domestic listings, rather than opt for cross-border structures in Singapore.