Temasek to establish REIT

PSA Corp''s former property portfolio to be listed as a REIT.

Mapletree Investments, a wholly owned subsidiary of Temasek Holdings has become the latest Singaporean property group to lay plans for a REIT, although a deal is not expected until towards the end of the year at the earliest. Credit Suisse First Boston, DBS and UBS Warburg have been mandated for the transaction, which is consider an interesting, but complex one to bring to market.

Local property experts say this is because the underlying portfolio is a mixed bag, which includes some cargo warehouses as well as commercial and industrial assets. By contrast, the two REITs, which are already listed in Singapore, have very defined portfolios and no dead assets.

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