S-REITs fundraising continues uptrend in 2025, reaching S$4 billion for YTD

Real Estate Investment Trusts in Singapore (S-REITs) are seeing strong equity fundraising (EFR) activity in 2025, with the total amount from primary and secondary fund raising reaching their highest levels since 2021.

Around S$4 billion of EFR has been announced by at least 10 S-REITs in the year-to-date, exceeding the S$2.9 billion raised in 2024 and S$1.9 billion in 2023.

Close to half of the fundraising from S-REITs this year came from the primary markets, with the initial public offerings (IPOs) of NTT DC REIT and Centurion Accommodation REIT (CAREIT), which raised US$824.1 million and S$816.1 million respectively.

Both IPOs have seen healthy interest from investors, with NTT DC REIT’s offering of 599.9 million units being 4.6 times subscribed, while CAREIT’s offering of 262.2 million units was 16.6 times subscribed.

Over in the secondary market, S-REITs have also been active in their EFR activities, sustaining the momentum seen in 2024, where there was S$2.9 billion in funds raised from placements and preferential offerings.

As of 10 October, at least eight S-REITS have announced more than S$2.1 billion in private placements and preferential offerings for the year-to-date, with the proceeds mainly used to fund acquisitions as well as partially reduce debt.

The larger REITs in the Straits Times Index (STI) have led in terms of the secondary fundraising for the year-to-date.

In August, CapitaLand Integrated Commercial Trust raised S$600 million, with part of the proceeds used to acquire the remaining interest in CapitaSpring. The placement was upsized from the original S$500 million, and the offering including the upsize offering was 4.9 times covered.

Elsewhere, CapitaLand Ascendas REIT also raised S$500 million in a private placement in May to partially finance the acquisition of two assets – including a Singapore data centre – and pare down debt. The private placement was approximately 4.1 times subscribed with strong participation from a quality mix of new and existing unitholders, long only funds, real estate specialists, private wealth and multi strategy investors.

Frasers Centrepoint Trust also raised over S$420m earlier this year with a preferential offering and private placement to repay debt and acquire the remainder of Northpoint City. The private placement was upsized from S$200 million to S$220 million, and the enlarged issuance was around 4 times covered.

More recently, Keppel DC REIT also announced the launch of a preferential offering in September to raise gross proceeds of around S$404.5 million, with the bulk of proceeds to be used for partially financing an asset acquisition, as well as to repay debt. The new units from the offering are expected to be listed on the SGX on Oct 22.

Keppel DC REIT is the largest Data Centre REIT in Asia, while CICT has also become the largest REIT in Asia.

Other S-REITs that have also carried out EFR exercises in 2025 so far include Keppel REIT, Prime US REIT and Elite UK REIT.

The increased fundraising and deal activity from S-REITs coincides with strong growth in total real estate investment sales in Singapore amid a declining interest rate environment.

Knight Frank Singapore Research noted that total real estate investment sales in Q3 2025 has risen to S$10.5 billion, a 23.8 per cent increase from S$8.5 billion in the year-ago period, with CICT’s acquisition of CapitaSpring the largest transaction during the quarter.

The research team expects investment sales activity for the rest of 2025 and early 2026 to continue to be characterised by Government Land Sales tenders of residential sites and REIT activity, with smaller to mid-tier investments of less than S$200 million, especially in accommodation and industrial properties, to continue to feature in the market.

Source: Company Announcements