ESR-REIT's UE BizHub EAST. (Photo: REITsWeek)ESR-REIT's UE BizHub EAST. (Photo: REITsWeek)

The enlarged REIT that will arise from the merger of ESR-REIT and Sabana REIT Shari’ah-compliant REIT (Sabana REIT) will not be adhering to Islamic financing regulations.

Sabana REIT is Singapore’s first, and currently only Shari’ah-compliant REIT.

It was listed in 2010 under a Shari’ah-compliant framework, partly with the intention to attract funds from the Middle East, and Muslim-majority nations.

Sabana REIT and ESR-REIT subsequently announced on 16 July that it has proposed to merge to form Singapore’s 5th largest industrial REIT by asset size

Related: ESR-REIT, Sabana REIT to form Singapore’s 5th largest industrial REIT via merger

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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.