Asian REITs saw a 24.7 percent year-on-year increase in total market capitalisation to US$69.0 billion in the first half of the year, according to a report by CB Richard Ellis (CBRE).
The first half of this year also saw the launch of six new REITS, a dynamic period for REIT IPOs in Asia, said CBRE.
“Despite increased listing activity, the fortunes of Asian REITs still remained mixed. During the first half of the year some markets have seen strong growth in IPO and acquisition activity and others have witnessed delisting applications, mergers and consolidations,” said Mr. Andrew Ness, executive director of CBRE Research Asia.
Singapore-listed Fortune REIT, which has a portfolio of suburban retail malls and other assets in Hong Kong, became the first Asian REIT to get a dual listing, after its listing in Hong Kong.
Cache Logistic Trust, which holds a portfolio of six logistic properties, also had a successful launch onto the Singapore REIT market in April.
Acquisition activity by Asian REITs rebounded sharply in the first half, with US$5.7 billion worth of deals, exceeding the US$4.2 billion set for the whole of 2009.
Japan was still the most active market for asset acquisitions, with Mori Trust Sogo REIT’s 110 billion yen (US$1.24 billion) acquisition of a 50 percent stake in Tokyo Shiodome Building, the biggest transaction completed by an Asian REIT during the period.
Malaysian and Singaporean REITs were active buyers of retail, office, healthcare and industrial assets, while REITs in Korea, Thailand, Taiwan and Hong Kong were still inactive.