UI Boustead Reit raises $973.6 mil in IPO with oversubscribed offering
Singapore properties in its portfolio include Aumovio Building Phase 1 & 2, Rolls-Royce Solutions Asia (pictured), Razer SEA HQ, and GSK Asia House. (Photo: UI Boustead Reit)
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In Singapore’s first mainboard and Reit initial public offering (IPO) of the year, logistics and industrial-focused UI Boustead Reit has raised about $973.6 million from a placement tranche, a public offer, and cornerstone commitments.
Its manager announced on March 11 the completion of the offering of about 677.2 million units in the Reit at an offer price of $0.88 per unit. This comprised an international placement of about 643.3 million units and an offering of some 33.9 million units to the public in Singapore.
The placement tranche, offered to institutional and other accredited investors, was about 3.3 times subscribed — representing $1.9 billion of demand.
The offering also saw strong retail interest. At the close of the Singapore public offer at noon on March 10, its subscription rate was 2.9 times. This signals confidence from investors in UI Boustead Reit’s prospects, especially in light of the current volatile geopolitical and market conditions, according to the Reit manager.
Cornerstone commitments totalled about $377.7 million, mainly from global and regional long-only institutional investors and family officers.
Tan Shu Lin, CEO of the Reit manager, said, “Despite ongoing macroeconomic volatility, the successful close of the IPO reflects confidence in the quality of our portfolio and its ability to generate stable and resilient cashflows.”
UI Boustead Reit focuses on logistics, industrial, high-spec industrial and business space assets in the Asia Pacific and real estate-related assets. Its initial portfolio is made up of 23 properties, with 21 in Singapore and two in Japan, spanning a total gross floor area of about 5.9 million square feet.
The IPO preliminary prospectus noted that the Reit will pursue organic growth through contractual built-in rental escalations, lease-up opportunities, and positive rental reversions from lease renewals.
Trading of the units in the Reit on the Singapore Exchange’s mainboard is expected to start on March 12 at 2pm.
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