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

A reverse takeover (RTO) deal that would have seen Singapore-listed Saizen REIT resurrected as an industrial real estate investment trust has fallen through, a disclosure filed on the Singapore Exchange on 10 March has confirmed.

The RTO attempt failed as it would not be possible to complete the transaction by the long-stop date of the implementation agreement by 31 March 2017, said the REIT.

“The manager will commence liquidation proceedings for Saizen REIT upon the mutual termination of the implementation agreement, and will make relevant announcements to keep unitholders updated as appropriate on next steps”, it added.

Saizen REIT first announced in August 2016 that it was in talks with Malaysian conglomerate Sime Darby for a possible RTO arrangement.

The arrangement would have seen Saizen REIT acquire Hastings Deering's (a wholly owned subsidiary of Sime Darby) 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.

Saizen REIT was first listed on the Singapore Exchange in 2007 as the country’s first, and only residential REIT that focused on Japanese housing properties.

The REIT disposed its entire portfolio of residential properties in March 2016, but continued to exist as a cash trust.

Units of Saizen REIT were suspended from trading on 8 March “pending release of an announcement”, a filing on the Singapore Exchange shows.

A request to lift the trading halt was filed with the bourse on 10 March after the close of trading hours.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.