SINGAPORE (Bloomberg) ? Macquarie International Real Estate Fund Ltd., a global real estate investor, cancelled a S$676 million ($402 million) initial public offering in Singapore, citing the ?softening? market for property trusts.

There was also concern about the ?significant? number of recent capital raisings, the Bermuda-based fund said in a statement yesterday. Macquarie International said it will proceed with the IPO next year, without being more specific.

The fund would have been competing for capital with companies such as Keppel Land Ltd., which plans to start a real estate trust with office buildings in the city-state valued at S$631 million. The Bloomberg Asia REIT index, which tracks 38 companies across the region including those in Singapore, has fallen 10.4 percent this year.

?The market is saturated and a bit tired of what is available or what?s on offer,? said Winston Liew, a Singapore-based analyst at OCBC Investment Research.

Shares in Singapore-based Macquarie MEAG Prime REIT, which owns retail and office buildings, are more than eight percent below their closing price of S$1.05 on their first day of trading on September 20 this year. Property trust IPOs globally exceeded $10 billion in the past two years, according to Bloomberg data, as governments across Asia amended laws to ease their creation.

Macquarie International, managed by Macquarie Bank Ltd., planned to offer investors access to global property assets, including publicly owned REITs, according to offer documents.

It had forecast an annualised dividend yield of between 8.4 percent and 9.6 percent from its start of trading until June 30, 2006, the document said. It didn?t say when the shares will be listed. The fund expects an annualised dividend yield of between 6 percent and 6.8 percent for the six months ending June 30, 2006.

Sydney-based Macquarie Bank, Australia?s largest investment bank, has almost quadrupled profit in the past four years from arranging share sales, advising on purchases for the investment funds it manages and collecting bonus fees if the funds beat indexes.

It has more than A$112 billion of assets under management globally.

Macquarie Bank stock is up 44 percent this year, outpacing a 12 percent rise in the 55-member S&P/ASX 200 Finance Index.

Last week, Singapore Power Ltd. raised A$1.4 billion ($1 billion) in an IPO of its Australian energy unit.

Genting International Plc, the overseas investment unit of Asia?s biggest publicly traded casino group, raised S$350 million in a Singapore share sale.

There have been $2.9 billion of share sales in Singapore this year, equal to the amount sold in 2004, according to data compiled by Bloomberg.

Investors may also be shunning property share sales amid a glut in Asian offerings, said Gabriel Yap, a senior dealing director at Phillip Securities Ltd. in Singapore.

Link Management Ltd., which will buy shopping malls and car parks from the Hong Kong government, raised HK$19.83 billion ($2.6 billion) last month. Prosperity REIT, owned by Hong Kong billionaire Li Ka-shing?s Cheung Kong (Holdings) Ltd., raised HK$1.92 billion last week.

?There have been about four REIT share sales in the last two months, including Link REIT and Prosperity REIT,? said Yap. ?That may be too much, too quickly.?