Tokyo-based Asia Pacific Land Group plans to raise S500 million ($326 million) by listing a real estate investment trust in Singapore, banking sources told Reuters news service.
The listing would be the first instance of a Japanese company listing a REIT in Singapore. Sources told the news service that the privately-held company wants to divest some of its Japanese retail and office properties into the property trust. The company has $1.5 billion in assets under management.
Sources close to the deal said the company intends to create a management platform around the REIT which would allow it to gain more specific expertise in the area.
Singapore’s REIT market is the third-largest in the Asia-Pacific region, and bankers have speculated that the country could be attractive to Japanese firms looking to divest foreign property assets through REITs. Whole REITs in Japan are not allowed to hold offshore assets, Singapore REITS are.
Other Japanese firms said to be in talks to IPO REITs in Singapore include real estate funds manager Re-plus, which is said to be in talks with Citigroup to list a property trust based on its office building holdings in China.