4 Singapore REITs to Watch Out for in August

Thu, 31 Jul 2025, 7:30 pm 5 min read

The REIT sector is grappling with lingering headwinds as interest rates look poised to stay “higher for longer”.

The good news is that REITs are not standing still.

REIT managers are engaging in capital recycling or asset improvement works to enhance the quality of their REIT portfolios.

With the above in mind, here are four interesting REITs to watch for that have undertaken some of these initiatives.

Stoneweg Europe Stapled Trust, or SERT, owns a portfolio of over 100 predominantly freehold properties in countries such as the Netherlands, Italy, France, Poland, and others.

SERT’s portfolio has a total lettable area of around 1.7 million square metres and is valued at €2.2 billion.

SERT entered into a binding offer to divest Arkonska Business Park in Poland for €7.8 million.

This is a non-core office asset and is consistent with the REIT’s strategy to reduce exposure to non-core markets and B or C-grade office assets.

The transaction will leave SERT with four Polish office assets and also reduce its exposure to Poland from the current 7% to 6.7%.

It also increases the REIT’s logistics and light industrial building exposure to 56.1% from 55.9%.

Arkonska Business Park is a two-building office complex with a total lettable area of 11,710 square metres.

It was valued at around €7.96 million as of 30 June 2025, and the sale price represents a slight discount to this valuation.

Proceeds from the sale will be used to reduce SERT’s revolving credit facility or for general working capital purposes.

The divestment is expected to be completed by the second half of 2025.

Mapletree Pan Asia Commercial Trust, or MPACT, is a retail and commercial REIT with a portfolio of 17 properties across Singapore (4), Hong Kong (1), China (2), Japan (9), and South Korea (1).

The total value of these properties is S$16 billion as of 31 March 2025.

Last week, MPACT signed sale and purchase agreements with two unrelated third parties for the sale of two office buildings in Japan.

Under the agreements, ABAS Shin-Yokohama will be sold for JPY 3.33 billion while TS Ikebukuro Building will be divested for JPY 5.4 billion.

The combined divestment amounts to JPY 8.73 billion and is a 1.7% premium compared with the aggregate purchase price of the properties at JPY 8.58 billion.

These divestments are a part of the manager’s ongoing portfolio reconstitution efforts, with divestment proceeds used to reduce debt and strengthen MPACT’s balance sheet.

The divestments should be completed by the end of August and will leave MPACT with a portfolio of 15 commercial properties.