UI Boustead REIT launches Singapore IPO to raise $973.6 million

SINGAPORE - UI Boustead Real Estate Investment Trust (REIT) has launched an initial public offering that will raise $973.6 million, in the largest IPO to date in 2026.

It also marks the first REIT listing on the Singapore Exchange (SGX) mainboard in 2026.

The public offer consists of 677.2 million units at 88 cents apiece that will raise $595.9 million. The offer opened on March 5 and will close at noon on March 10. Trading will begin at 2pm on March 12.

Cornerstone commitments will bring in another $377.7 million, mainly from global and regional long-only institutional investors and family offices.

The REIT expects to raise gross proceeds of around $1.2 billion from the public offer, cornerstone units, issuance of Boustead units and sponsor subscription units.

These will be used for buying properties, paying refundable consumption tax, issue expenses and transaction costs, and for working capital and cash reserves.

The REIT offers a forecast distribution yield of 7.4 per cent for financial year 2026 and 7.8 per cent for FY2027, with the offering price at 1.0 times net asset value.

The REIT is a logistics, industrial and business landlord with an initial portfolio located in Singapore and Japan.

This comprises 23 properties with a total gross floor area of around 5.9 million sq ft and a total agreed property value of around $1.9 billion.

Ms Tan Shu Lin, chief executive of the REIT manager, said: “UI Boustead REIT’s portfolio serves tenants in the high-technology, value-add and innovative sectors, which are expected to continue to expand on the back of robust structural demand.

“In addition, there is a visible pipeline to grow the IPO portfolio that includes asset enhancement initiatives, acquisitions and co-development opportunities.”

UI Boustead REIT said in a statement that the IPO portfolio also provides investors access to Singapore and Japan – two of the Asia-Pacific’s most attractive industrial and logistics markets.

“Together, the IPO portfolio provides balanced exposure to resilient, supply-constrained markets characterised by low logistics stock per capita, attractive yield spreads and favourable business environments,” it said.

It added that the IPO portfolio is well-positioned to support industries that are aligned with Singapore’s economic growth strategies.

Some 69 per cent of the IPO portfolio is anchored by tenants engaged in sectors such as electronics and information technology, automotive, aerospace and avionics, life sciences, precision engineering, tech, media and telecommunications.

“These sectors are strategically important in Singapore as they are part of the Government’s efforts to expand manufacturing value-add. Having tenants in such sectors positions UI Boustead REIT to have strong income stability and organic growth prospects,” it said.

Some 65 per cent of the IPO portfolio also serves strategic tenant infrastructure. For instance, Razer SEA HQ and GSK Asia House use the REIT’s properties as their regional headquarters or regional hub.

Mr James Kemp, chairman of UIB Holdings, which is the sponsor for the IPO, said: “We are confident that UI Boustead REIT’s listing on the SGX mainboard will enhance investors’ access to the industrial, logistics and business space sectors in two of the most attractive markets in Asia.”

Mr Kemp, who is also head of real estate for Asia-Pacific at Macquarie Asset Management, added that he looks forward to working closely with the REIT’s management team to support long-term value creation.