Boustead Singapore has announced the proposed listing of the UI Boustead REIT (UIB REIT) on the Singapore Exchange (SGX). The REIT will focus on investing in logistics, industrial, high-specifications industrial, and business space assets in the Asia Pacific region, with an initial emphasis on Singapore and Japan. The initial public offering (IPO) portfolio is expected to include 23 properties, comprising 21 leasehold properties in Singapore and two freehold properties in Japan, with a total gross floor area (GFA) of 5.9 million square feet and a net lettable area (NLA) of 5.3 million square feet. The total agreed property value of the IPO portfolio is estimated to be S$1.9 billion.
Boustead will hold up to 16.9% of the IPO units post-listing and is expected to recognize a gain on disposal of approximately S$52.6 million. The REIT will be sponsored by UIB Holdings Limited, in which Boustead has a 20% interest. The listing is subject to regulatory approvals and market conditions.
Keppel DC REIT Preferential Offering
Keppel DC REIT is set to raise approximately S$404.5 million through a preferential offering to fund its acquisition of the freehold Tokyo Data Centre 3 for 82.1 billion yen (S$707 million). The preferential offering will allow entitled unitholders to subscribe to 80 new units for every 1,000 existing units held, at an issue price of S$2.24 per unit, which is a 5.2% discount to the volume-weighted average price of S$2.3622 on September 22, 2025.
The proceeds from this placement will not only fund the Tokyo acquisition but also support an asset enhancement initiative at Keppel DC Singapore 8, cover associated costs for a 30-year land lease extension for Keppel DC Singapore 1, and assist in debt repayment. The acquisition of Tokyo Data Centre 3 is expected to be completed by the end of 2025.
The preferential offering is slated to open on 3 Oct 2025 and close on 13 Oct 2025, with the new units listed on 22 Oct 2025.
The Bedokian’s Take
It is noteworthy that 100% of Tokyo Data Centre 3 is contracted to a leading global hyperscaler for 15 years with annual rent escalation (Amazon? Microsoft? Google Cloud?). The rise of cloud services and use of artificial intelligence had made data centres good proxies to invest in the former fields. With an accretive distribution-per-unit of +2.8%, and a still healthy gearing of 34.5% post-acquisition, we would at least be buying up our entitlement.
As for UIB REIT, I would wait for the issue of the prospectus before deciding.
Disclosure
The Bedokian is vested in Boustead Singapore and Keppel DC REIT.
References
UI Boustead REIT
https://boustead.sg/sites/boustead.sg/files/2025-09/2025-09-18_Proposed-Divestment-of-Stakes-In-Certain-%20Singapore-Logistics-and-Industrial-Assets-And-Other-Potential-Transactions-In-Connection-With-The-Proposed-Listing-of-UI-Boustead-REIT-On-The-SGX-ST_1.pdf
Keppel DC REIT
https://www.keppeldcreit.com/en/file/investor-relations/presentations/2025/kdcr-acquisition-of-tokyo-dc-3-and-preferential-offering-presentation.pdf
https://www.businesstimes.com.sg/companies-markets/reits-property/keppel-dc-reit-raising-s404-million-unitholders-help-fund-82-billion-yen-tokyo-data-centre-buy
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