Brookfield eyes more Singapore deals from REITs under pressure

Brookfield Asset Management is setting its sights on acquiring more Singapore properties, particularly targeting real estate investment trusts (REITs) that are currently under financial strain. This comes on the heels of its recent $535 million purchase from Mapletree Industrial Trust, a move that highlights the firm’s growing confidence in the city-state’s real estate market.

Andrew Burych, Brookfield’s head of East Asia real estate, pointed out that several REITs in Singapore are now trading below their net asset values. The company sees these distressed valuations as an opening to step in and provide liquidity. This not only helps REITs offload assets but also allows them to reinvest in their core operations.

Brookfield’s strategy isn't just about buying assets—they aim to bring in capital and operational know-how to help these REITs rebound. By working with them, Brookfield hopes to enable asset recycling: selling underperforming or non-core properties so REITs can focus on stronger, higher-performing core holdings.

The company sees broader opportunities across sectors such as life sciences, logistics, hospitality, and alternative housing. These areas align with Brookfield’s existing strengths in Asia-Pacific and the Middle East, where they manage roughly $40 billion in assets. The firm recently held its first Brookfield Forum in Singapore, signalling its intention to deepen its footprint throughout the region.

Rising interest rates and high borrowing costs have put pressure on REITs, which rely on debt financing. That has driven down their trading values to around 0.8 times their book value, creating a ripe environment for Brookfield's contrarian investment approach. While many investors are hesitating amid economic uncertainty, Brookfield is leaning in.

For Singapore’s REITs, this attention from a global player like Brookfield offers a potential lifeline. The firm’s ability to inject cash and provide strategic guidance could stabilize struggling portfolios and offer a path back to growth. More broadly, Brookfield’s active involvement may spark renewed investor interest in the sector and help safeguard the strength of the local real estate market.