S-REIT fundraising tops $4.5b amidst acquisition activity

Singapore’s real estate investment activity rose 49% in Q2 2026

Singapore-listed real estate investment trusts (S-REITs) have raised at least $4.5b through equity fundraising (EFR) exercises as of 10 September 2026, exceeding the amount raised over the same period in 2025.

The fundraising activity builds on 2025’s momentum, which was the strongest year for S-REIT primary and secondary fundraising since 2021.

UI Boustead REIT led fundraising activity in 2026 with its initial public offering (IPO) in March, which raised more than $1b. The offering was 3.3 times subscribed, with demand from both institutional and retail investors.

In the secondary market, larger S-REITs accounted for some of the biggest fundraising exercises, with proceeds mainly directed towards acquisitions to expand their portfolios.

Keppel REIT raised $886m through a preferential offering in January, on the basis of 23 new units for every 100 existing units.

The proceeds funded the acquisition of an additional one-third interest in Marina Bay Financial Centre Tower 3.

Following the acquisition, Keppel REIT’s portfolio value increased from $9.8b to $11.2b, whilst its Singapore exposure rose from 75.8% to 79.0%.

In April, CapitaLand Integrated Commercial Trust raised $750m through a private placement to partially fund its proposed acquisition of a 100% interest in Paragon. The placement was upsized from $600m and the enlarged offering was 4.8 times covered.

CapitaLand Ascendas REIT also raised $903.5m in April through a private placement and preferential offering.

The proceeds were used to partially fund acquisitions, including logistics properties in Singapore, the United States and Spain, a 50% interest in a Singapore business park, and a 49% interest in a data centre in Japan.

More recently, Elite UK REIT completed a £7.4m private placement to partially fund the proposed acquisition of five properties in the United Kingdom and the conversion of Lindsay House in Dundee into a purpose-built student accommodation facility.

The placement was oversubscribed, with participation from existing and new institutional investors, long-only funds, and high net worth individuals.

Keppel DC REIT completed a $625m private placement in September to partially fund its acquisition of an 88.6% interest in two freehold hyperscale colocation data centres in Japan.

The placement was around 3.4 times covered after being upsized from $600m.

The acquisition is expected to increase Japan’s contribution to portfolio rental income from around 9% to 23%, whilst Singapore will remain the REIT’s largest market at 60%.

Following the acquisition, Keppel DC REIT’s assets under management will increase to around $7.6b across 27 data centres in 10 countries.

Deal flow is expected to remain active amidst continued flight-to-safety moves and favourable interest rates in the second half of 2026, as per Knight Frank Singapore Research said in its August report.

It expects total investment sales for 2026 to approach $40b, broadly similar to 2025, barring a significant deterioration in market conditions or unexpected widespread systemic shocks.

DBS Group Research also said in June that nearly 85% of S-REIT managers expect interest costs to remain stable or decline through 2026, following lower benchmark rates in the first quarter.

Lower interest costs are expected to gradually improve distributable income and support DPU compound annual growth of around 3% over FY2026–27.