Centurion's REIT listing signals hope for Singapore IPOs
SINGAPORE: Singapore-based Centurion Corporation announced plans to list a Real Estate Investment Trust (REIT) on the Singapore Exchange (SGX) Mainboard on June 11. This can catalyse more initial public offerings (IPOs) in Singapore's stagnant share market.
Subsequent to the announcement, Centurion's shares rose 3.4% to S$1.53 on June 11, a record high. About 2.4 million shares of the company changed hands, indicating strong investor interest.
The SGX and the Monetary Authority of Singapore (MAS) are currently reviewing Centurion's submissions. The decision to list the REIT comes amid MAS efforts to boost share sales and liquidity in Singapore's equity market.
The proposed REIT is backed by DBS Group and UBS. It has a portfolio of 37 accommodation assets, which includes 69,929 beds as of March 31, 2025. Focused on student and worker housing, it aims to capitalise on Singapore's infrastructure growth and the post-pandemic surge in student enrollment.
At present, MAS is leading efforts to revive Singapore's equity market. The stock market has encountered issues like low liquidity and a high number of delistings (20 in 2024 compared to four IPOs). There is also an ongoing undervaluation of small- and mid-cap stocks.
In February 2025, MAS's Equities Market Review Group, chaired by Minister Chee Hong Tat, launched a S$5 billion Equity Market Development Programme (EQDP). Seeking to boost liquidity and attract growth enterprises, it's among the different measures meant to bring firms back to Singapore's stock market.
Singapore has the third-largest REIT market worldwide, after Tokyo and New York, with 40 S-REITs and property trusts. Together, they have a market capitalisation of about S$100 billion (US$74 billion). This accounts for 12% of SGX's total market cap.
If successful, Centurion's REIT listing could pave the way for more listings, joining NTT's proposed data centre REIT listing. If both go through, they are likely to revive investor confidence and share trading in the Singapore market.
The city-state's equity capital markets struggle with a lack of domestic capital anchors. In comparison, the bourses of Hong Kong, Sydney, Tokyo, and Kuala Lumpur are anchored allocations to domestic equities from public sector investors.
Pension funds in Kuala Lumpur, Tokyo, and Hong Kong actively channel capital into local equities through a network of fund managers. Additionally, Malaysian insurers invest in local stocks. All this serves to create a sustainable cycle of institutional liquidity, stabilises the market and sustains investor confidence.
This structural gap in Singapore's equity markets has driven weak IPO activity, market fragmentation, and losses in investor confidence.
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