OUE Commercial REIT's OUE Downtown (Photo: REITsWeek)OUE Commercial REIT's OUE Downtown (Photo: REITsWeek)

Singapore may have emerged as a hub for REITs in the Asia-Pacific region, but market fragmentation across the sector likely mean that consolidations are now inevitable.

This is the view echoed by Principal Global Investors, an institutional asset management firm.

The comment has come amid a series of Singapore REIT mergers, with the latest coming from OUE Commercial REIT, and OUE Hospitality Trust.

The two entities announced in April 2019 that it would merge to form a SGD6.8 billion (USD5 billion) mixed commercial REIT, which will be one of the largest to be listed on the Singapore Exchange (SGX).

Related: OUE Commercial REIT sheds more light on post-merger plans

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.