UI Boustead REIT: A New Entrant in Singapore’s Industrial REIT Space
UI Boustead REIT is expected to commence trading on the SGX Mainboard on 12 March. The REIT has a mandate to invest in logistics, general industrial, hi‑specs industrial and business space properties across the Asia Pacific region.
The IPO portfolio comprises 23 properties, of which 21 are leasehold assets located in Singapore and two are freehold properties in Japan. The total agreed property valuation stands at S$1.9 billion, with a total gross floor area of 5.9 million square feet and a net lettable area of 5.3 million square feet. The portfolio is well diversified across the various property types, with no single property type contributing more than 30 per cent of the agreed property value.
The REIT’s portfolio currently has an occupancy rate of 89.4%. Key properties include Razer’s Southeast Asia headquarters, Edward Boustead Centre, GSK Asia House and Rolls‑Royce Solutions Asia. The top 10 tenants contribute 54% of net property income, with nine out of the top 10 tenants being Fortune 500, Fortune 500 Europe and publicly-listed multinational corporations. The average weighted average lease expiry (WALE) for the top 10 tenants is 8.4 years.
According to the IPO prospectus, there is potential for positive rent reversions across the portfolio. All single‑tenanted properties have contractual built‑in rental escalations, providing certainty in organic growth potential. The average rental escalation from single‑tenanted properties is projected at 2.2% for Projection Year 2027. In addition, approximately 420,000 square feet of space is currently under negotiation, which could contribute an additional 8.0% of incremental occupancy uplift if concluded.
The Singapore properties have achieved average rent reversions of between 7.5% and 11.5% for leases renewed in FY24 and FY25, and a positive rent reversion of 11.3% for renewals committed between 1 April 2025 and 30 September 2025.
UIB, as the Sponsor of the REIT, was formed through Unified Industrial’s acquisition of Boustead’s fund and property management business. The Sponsor currently manages total assets under management (AUM) across Asia of US$4.0 billion. Both UIB and Boustead Projects Limited have granted a right of first refusal (ROFR) to UI Boustead REIT over their respective pipeline of relevant real estate assets. Additionally, the Sponsor has indicated that the REIT will serve as the sole capital recycling vehicle for its Pan‑Asian stabilized industrial and logistics assets.\
At an issue price of S$0.88 per unit, the REIT is expected to raise approximately S$1 billion (including the over-allotment option exercised in full) and have an initial market capitalisation of approximately S$1.2 billion. Based on this issue price, the REIT has a price to net asset value (NAV) of 1.0 times. The forecast distribution yield is 7.4% for Forecast Year 2026 and 7.8% for Projection Year 2027. The aggregated leverage ratio is estimated to be 37.9% at IPO.
Cornerstone investors have committed to acquire 31.4% of the IPO units, including Amova Asset Management, JPMorgan Asset Management (Singapore), Amundi Singapore Limited, Jumbo Group and Boustead CEO Wong Fong Fui.
Following the listing of UI Boustead REIT, the number of industrial S‑REITs in Singapore will rise to eight, making Industrial S‑REITs the second‑largest property sub‑segment by the number of REITs, after Diversified S‑REITs.
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