The Singapore branch of Standard Chartered Bank has purchased 2.25 million units in recently-listed Viva Industrial Trust (VIT) (SGX: T8B) yesterday. The purchase was done in the bank’s capacity as stabilizing manager for the IPO of Viva Industrial Trust.

UE Bizhub is currently the flagship property in the portfolio of Viva Industrial Trust

The units were done in multiple tranches and purchased at prices of between S$0.75 and S$0.765 each. Viva Industrial Trust went to IPO at S$0.78 in the previous week.

Announcement of the stabilizing bid did little to lift the prices for the trading day. Prices for units in the stapled security slid by as much as 2 cents by mid-day only to advance towards the closing bell to close at S$0.775.

The IPO has been seen by some as a barometer that will determine the climate for aspiring REITs such as the OUE Commercial REIT. Weighed by concerns of rising interest rates, Viva Industrial Trust has yet to breach beyond its IPO price after several days of trading. This is the seventh IPO for a securitized real estate investment in Singapore this year and several more are expected to join the party towards the end of the year. But the performance of VIT since IPO has raised some serious doubts on that.

Viva Industrial Trust is a stapled security comprising of Viva Industrial Real Estate Investment Trust and Viva Industrial Business Trust.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.