This story is developing, and we will update our coverage along with new information and responses from the respective REITs involved.
The managers of ESR-REIT and ARA LOGOS Logistics Trust (ALOG) have proposed to merge the two entities into a new Singapore REIT known as ESR-LOGOS REIT.
The proposed merger comes on the back of news that ESR will acquire ARA Asset Management.
The ESR-ARA transaction is set to create the largest real asset manager in the Asia-Pacific and the third largest listed real estate investment manager globally with a combined asset under management (AUM) of USD131 billion.
Over 50% of the enlarged ESR Group’s AUM will come from perpetual and core capital vehicles including 14 listed REITs.
The proposed merger to create ESR-LOGOS REIT will be effected by way of a trust scheme.
ALOG unitholders will receive a scheme consideration of SGD0.95 for each ALOG unit.
This comprises a cash payment of SGD0.095 and 1.6765 new ESR-REIT units issued at SGD0.51 each.
The aggregate scheme consideration is based on a gross exchange ratio of 1.863 times.
The total consideration for the proposed merger is approximately SGD1.4 billion.
ESR-LOGOS REIT will hold a portfolio of 87 properties including 20 in Australia, and 41 fund properties in Australia held through fund investments, totalling a net leasable area of 24.1 million square feet.
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