Saizen REIT's former property, Clair Court, when it was still a residential REIT. (Photo: Saizen REIT)Saizen REIT's former property, Clair Court, when it was still a residential REIT. (Photo: Saizen REIT)

Malaysian conglomerate Sime Darby, and its Australian subsidiary Hastings Deering (Australia), has entered into a framework agreement to acquire a majority stake in Singapore-listed Saizen REIT though a reverse takeover.

The framework will see Saizen REIT acquire Hastings Deering's industrial properties in Australia. In return, new units of Saizen REIT will be issued to Sime Darby's subsidiary in Singapore, Sime Darby Property Singapore Limited (SDPSL), as part of the reverse takeover.

These proposed transactions will require Saizen REIT's unitholders approval at an extraordinary general meeting that will be convened at a later date.

“The acquisition is in line with Sime Darby’s corporate strategy to develop a REIT platform to generate a resilient and recurring income stream,” said the company in a regulatory disclosure on the Bursa Malaysia.

Saizen REIT is currently a cash trust on the Singapore Exchange after its portfolio of Japanese residential assets were disposed in March 2016.

By Anushia Kandasivam

Anushia Kandasivam is REITsWeek's Asia-Pacific writer based in Kuala Lumpur, Malaysia. She writes on a broad range of topics and is especially keen on financial matters.