trust

Singaporean Reit sector displays improved momentum as Frasers Hospitality Trust attracts strong demand.

The hotel-focused trust, which is being spun off from property developer Great Eagle, raises $549 million amid strong demand from yield-hungry institutions.

The Great Eagle spin-off is the first business trust-like vehicle to attempt a Hong Kong IPO in 18 months, offering yield-focused investors an alternative outside Singapore.

Langham Hospitality trust is seeking to raise up to $700 million by selling as much as 49% of the trust to yield-focused investors, sources say.

The chairman raises $161 million on the back of a 75% gain in the share price since listing. An anchor investor takes about 70% of the deal.

The BTS SkyTrain operator’s infrastructure fund is expected to start trading in April, and could open the door for further issuance.

Focusing on hotels and serviced apartments, Far East Reit is aiming to raise about $557 million, which would make it the biggest offering in Singapore so far this year.

The trust gets the deal done despite a last minute change to its hotel portfolio and prices at a 7.9% yield for the current fiscal year.

The trust, which first started pre-marketing in May, has signed up three cornerstone investors for the $450 million deal and is offering a yield of up to 7.8% for March 2013.