Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)

Soilbuild (SB) Business Space REIT will delist from the SGX through a privatisation process.

The privatisation will be carried out via a trust scheme that will be offered by a joint entity owned by Soilbuild’s co-founder, Lim Chap Huat, and affiliates of Blackstone Real Estate.

Under the trust Scheme, the entity is proposing to acquire all the issued units in the REIT at SGD0.550 each.

“Notwithstanding the board and management team’s efforts to maximise value for SB unitholders over the years, the SB unit price has implied a high yield and was further impacted by the COVID-19 pandemic”, said Chong Kie Cheong, Chairman of the REIT’s manager.

“After considering the uncertainty of a global recovery and the merits of this proposed trust scheme, we believe it represents a credible offer in the face of challenging market conditions and would like to present it to SB unitholders for their consideration”, he added.

More details of the privatisation and delisting can be found here.

Soilbuild REIT was last done on the SGX at SGD0.535, which implies a distribution yield of 8.2% according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.