DBS

Singapore’s credentials as Asia’s hub for real estate investment trusts were underlined this week, as an ideal market backdrop triggered a burst of Reit activity. With Lendlease Reit scooping up S$740.3m ($536.5m) from its hugely popular IPO, and more deals on the way, the Lion City offers big opportunities, writes Jonathan Breen.

Investors’ hunt for yield worked in Road King Infrastructure’s favour, with its $480m bond eight times covered at the peak. Most accounts stayed in the trade despite its tight pricing.

Chinese real estate firm Zensun Group and local government financing vehicle (LGFV) Guangxi Liuzhou Dongcheng Investment Development Group Co have sold their first dollar bonds, but had to manage their expectations on a busy day for issuance.

Commodities company Mercuria has returned for its annual outing to the syndicated loan market, and is seeking $1bn from a four-tranche borrowing.

Chinese companies came to the international bond market in force on Tuesday, just days ahead of a week-long holiday in the Mainland to celebrate National Day.

Investors ploughed into Lendlease Global Real Estate Investment Trust’s S$740.3m ($538.1m) IPO in Singapore, attracted to the potential yields on offer amid a low interest rate environment.

A range of Chinese issuers, including two property developers and a local government financing vehicle, have raised funds from the dollar bond market.

Shandong Iron & Steel Group Co has made its annual return to the bond market, grabbing $500m thanks to support from foreign fund managers.

Mapletree Industrial Trust raised S$400m ($290.6m) on Tuesday, becoming the latest in a growing line of trusts to tap Singapore’s equity capital market.

Keppel DC Real Estate Investment Trust priced a placement of new units at the top of guidance, raising S$235.4m ($171.3m) for the purchase of two data centres in Singapore.

Agricultural Bank of China’s Singapore branch has sold the tightest three year floating rate note (FRN) from a big four Chinese bank, adding $500m to its coffers.

Lendlease Global Commercial Real Estate Investment Trust has hit the road for its Singapore IPO as it seeks up to S$740.3m ($537.9m), according to a source close to the deal.