Friday, July 27, 2012

Ascendas Hospitality Trust - Strong Demand Seen

Strong demand has been reported for Ascendas Hospitality Trust's IPO which has been 6.9 times subscribed.  It offers an attractive yield of 7.9% and is the third hospitality trust/REIT to be launched on the SGX.  The other two hospitality related trusts and CDL Hospitality Trust and Ascott Residence Trust.  It is clear that hospitality trusts are seeing strong public demand as investors seek "safer" alternative investments that provide high yield.

Far East Organisation is also expected to launch its hospitality trust soon.

Ascendas Hospitality Trust is look to grow the value of its assets.  Unlike a typical REIT, this trust is still able to carry out some property development albeit limited.

Let's wait till this trust starts trading on the stock market and continue to keep watch.

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