Singapore REITs stir from long slumber with more acquisitions in Q3

Keppel REIT led the way with MBFC 3.

In spite of the country’s lacklustre property market, Singapore REITs actively acquired properties to stregnthen their portfolios in the third quarter.

According to CBRE, the acquisition game was led by Keppel REIT with its acquisition of one-third of the Marina Bay Financial Center Tower 3 for $1.248 billion. The sale of one third of MBFC Tower 3 was the only deal that crossed the $1 billion threshold.

Keppel REIT’s acquisition aside, the market also saw A-REIT adding Aperia Complex to their industrial portfolio at a cost of $458m.

In addition, Far East Hospitality Trust acquired 30 per cent stake in the development of two Sentosa hotels for an estimated amount of $138.50 mil, with the remaining 70% stake held by its sponsor, Far East Organization Group. This made up the only hotel investment deal in Q3 2014.

Desmond Sim, Head, CBRE Research, Singapore said “Spurred by a continued growth in the office occupier market, investment sales in Q4 2014 will likely be coming from the office sector, especially from the sale of completed strata office units. The market could also be surprised with the possible completion of some residential bulk purchases as the bid-ask price gap further narrows and investors manage to overcome barriers to entry in terms of funding.”