Promoting UK real estate against a backdrop of Brexit and COVID-19

In February 2020, CDR Singapore provided investor relations support for the initial public offering of Elite Commercial Real Estate Investment Trust, which listed on the Singapore Exchange.

Elite Commercial REIT was Singapore’s first UK-focused REIT, so had the buzz of something new for investors. However, the IPO was marketed against the backdrop of uncertainty over Brexit and volatile markets due to COVID-19.  It was important for Elite Commercial REIT to educate investors in Asia that its portfolio provides stable and recession-proof cashflow, given that its UK commercial properties are over 99% leased by the UK government.

CDR developed a proactive communications plan to engage reliable media outlets and influential financial bloggers with consistent and bold messaging which would reach investors looking for clarity and information. In every media interview, analyst and investor meeting, the goal was to emphasize the attractive and recession-resistant yields offered by the REIT, given its leases to the UK government, freehold properties and 100% occupancy rate.

Going on the front-foot addressing the issues paid off.  Elite Commercial REIT’s IPO was widely covered by media outlets in Singapore as well as financial blogs with detail and context. The IPO received overwhelming interest from investors, with the local Singapore retail public offer over-subscribed by 8.3 times. Gross proceeds of £130.9 million were raised. Elite Commercial REIT has continued to attract analyst coverage since its listing and its unit price has outperformed the overall Singapore Straits Times Index year-to-date.