Skip to main content

Advertisement

Advertisement

Soilbuild Business Space REIT tanks on debut

SINGAPORE - Soilbuild Business Space REIT, whose assets include business parks and industrial properties in Singapore, tanked on its trading debut on Friday, amid fears or rising interest rates, Bloomberg News reported.

SINGAPORE - Soilbuild Business Space REIT, whose assets include business parks and industrial properties in Singapore, tanked on its trading debut on Friday, amid fears or rising interest rates, Bloomberg News reported.

The shares dropped 8.3 per cent to S$0.715 at the close of trading in Singapore, compared with the IPO price of S$0.78 apiece. Mr Lim Chap Huat, co-founder of Soilbuild Group Holdings, the developer which partly owns the REIT, pledged to buy an additional 216.9 million units.

The REIT raised S$626.7 million, with the public offer of the IPO about 5.4 times subscribed, a company statement showed.

“I would attribute the decline to the market weakness today. Soilbuild had a decent response to the IPO,” said Barclays analyst Tricia Song.

Stocks in Asia fell on Friday, with the benchmark Straits Times Index dropping 0.7 per cent, while bond risk rose after an unexpected drop in US jobless claims fueled speculation the Federal Reserve will cut stimulus. Property trusts in Singapore face refinancing risks when borrowing costs rise, which may force them to sell assets or shares to boost their funding, Fitch Ratings said previously.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to our newsletter for the top features, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.