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The Philippines Competes Against Singapore to Lure REIT Listings

Zhen Hao Toh
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The Philippines Competes Against Singapore to Lure REIT Listings

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Singapore’s dominant position as a real estate investment trust listing hub in Asia is being eyed by a new contender: the Philippines.

The Philippines Securities and Exchange Commission recently eased tax and ownership rules in an effort to lure REIT listings by property developers in the country. Ayala Land Inc. is planning to raise $500 million once the rules are amended, which could be the first REIT listing in the country. A deal of this size would make it one of the five biggest initial public offerings in the Philippines on record, according to data compiled by Bloomberg.

Singapore scored the most REIT IPOs in Asia excluding Japan last year, with the trusts raising some $2.1 billion. The Singapore exchange topped others in the region in terms of money raised by REIT listings for five of the past 10 years. Investors hunting for yield in a falling interest rate environment also led to REITs listed in the city-state raising additional funds at a record pace last year.

There is no doubt that Singapore is the preferred listing destination for global REITs, as the only exchange attracting foreign listings in recent years. Since 2017, it has hosted the IPOs of Cromwell European Real Estate Investment Trust, ARA US Hospitality Trust and Eagle Hospitality Trust from Europe and the U.S. The favorable tax regime coupled with a well-tested judicial system in Singapore make it an ideal listing venue. Australia last saw a listing from a foreign REIT more than a decade ago. Hong Kong, while being the world’s top listing venue last year, saw its first REIT IPO in six years with China Merchants Commercial Real Estate Investment Trust’s debut in December.

There is quite some catching up to do for the Philippines in the REIT space given that there are currently 35 such trusts listed in Singapore, with a combined market capitalization of $101.5 billion. India, which has seen a surge in REIT listings over the last three years, could be a bigger threat.

UPCOMING LISTINGS:

Central Retail CorpThailand stock exchangeSize up to $2.6bBooks close Feb. 3, listing Feb. 20Bualang Securities, Phatra Securities, Credit Suisse, Morgan Stanley, UBS

Shenzhen Leoking Environmental Group

Hong Kong exchangePre-marketing started Dec. 18CLSA sole sponsorMr D.I.Y GroupBursa MalaysiaSize up to $500mPricing date TBDCIMB, Maybank

Guangzhou Jet Biofiltration Co Ltd

Shanghai exchangeSize $60mListing Jan. 22Minsheng Securities

Gongniu Group Co Ltd

Shanghai exchangeSize $519mListing TBASinolink Securities

Suzhou Zelgen Biopharmaceutical Co Ltd

Shanghai exchangeSize $292mListing TBACICC, Soochow Securities

EIT Environmental Development Group Co Ltd

Shanghai exchangeSize $148mListing TBAChina Merchants Securities

More ECM situations we are following:

Australia Resolute Mining plans a capital raising to seek up to A$196m to repay a loan.Indian Railway Finance Corp. has filed for an IPO to sell up to 1.4b shares.E-Star Commercial Management plans to raise ~$150m in an IPO in Hong Kong, IFR reported, citing people familiar with the matter.

SEE ALSO:

Asia ECM Weekly AgendaIPO dataU.S. ECM WatchEU ECM WatchTo receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this article

To contact the reporter on this story: Zhen Hao Toh in Singapore at ztoh4@bloomberg.net

To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Kurt Schussler, Margo Towie

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