Investors place trust in A-REIT

Singapore leads the way in the creation of a new asset class for Asia.

The appeal of a high dividend yield and equity story combining local knowledge with international expertise helped propel a S$240 million $136 million IPO for Ascendas Real Estate Investment Trust A-REIT towards five times oversubscription yesterday Wednesday.

A-REIT's success builds on that of its predecessor CapitaMall Trust CMT, whose similarly sized S$235 million IPO in late July established a new sector for both Singapore and non-Japan Asia. With a REIT, an investor is buying a trust that holds various buildings and gets paid an annual yield based on the rental incomes of the underlying assets. It is the most transparent property vehicle an investor can own.

The main difference between...

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