Public and international offers for logistics REIT attract significant investor interest
SINGAPORE: Daiwa House Logistics Trust (DHLT), a real estate investment trust (REIT) focused on logistics and industrial assets across Asia, reported that its public offer of 25 million units was heavily oversubscribed, with demand 9.5 times greater than available units. The offering closed on Wednesday with 7,543 valid applications requesting a total of 237 million units.
In addition to the public offer, the international placement tranche of 219.4 million units, priced at S$0.80 each, was also highly oversubscribed, with demand 4.9 times higher than the available units. The offering attracted a diverse range of investors, including long-term institutional players, insurance companies, multi-strategy funds, family offices, and high-net-worth individuals.
Cornerstone investors secured nearly 336.1 million units, representing 49.8% of the total shares offered in the IPO. The trust’s portfolio of modern logistics properties, along with the backing of Daiwa House Industry Co, a major Japanese construction and development firm, were key factors in the strong investor interest.
DHLT plans to use the funds raised from the IPO, along with a S$421.1 million loan, to finance the S$840.5 million acquisition of an initial portfolio of 14 logistics properties in Japan. The portfolio, which includes properties with an average age of 3.7 years and a total net lettable area of 423,920 square metres, will form the foundation for DHLT’s operations.
The units of DHLT will begin trading on the Mainboard of the Singapore Exchange at 2 pm on Friday.
