57% of Asian acquisitions done in Singapore

Singapore-listed Ascott REIT expanded to the Pacific and Europe respectively as they looked to diversify their portfolios and income sources.

According to CBRE's 2H 2010 edition of REITs Around Asia, Asian REIT markets strengthened in the second half of 2010 as acquisition activity rose and interest in IPO activity intensified.

Acquisitions by REITs in the second half totaled US$5.6 billion, bringing total acquisitions for the full year 2010 to around US$11 billion.

The total market capitalisation of Asian REITs rose by 46.8% yoy to US$95 billion for the whole year, with the second half witnessing the addition of eight new REITs and some stellar price growth.

Acquisitions for the full year 2010 totaled US$11 billion, marking a new annual record and a figure three times higher than that which was recorded in 2009. Activity in Singapore and Japan accounted for 57 per cent and 33 per cent of the total acquisition volume respectively. The period was also noteworthy for a number of Asian REITs beginning to invest in assets across Asia. Singapore-listed Ascott REIT and Malaysia-listed Al-Aqar KPJ REIT expanded to the Pacific and Europe respectively as they looked to diversify their portfolios and income sources. J-REIT acquisition activity was largely confined to Tokyo although several large J-REITs began to show an interest in other Asian markets. After a quiet few years the Hong Kong REIT market showed signs of activity as discussions began over the launch of the first RMB-denominated REIT containing prime commercial real estate assets in Beijing owned by Cheung Kong. Should its listing go ahead in 2011, the proposed REIT would mark the first listing of RMB-denominated equity outside mainland China.