REIT ASIAPAC MAGAZINE REITASIAPAC 3Q 2019 ISSUE | Page 16

REIT ASIAPAC SINGAPORE-REIT MERGERS IN THE LAST THREE YEARS U.S. Private Equity Firm Lone Star Acquired Singapore-Listed Saizen REIT Date of Completion: March 2016 Deal Valuation: S$542.8 million (US$391.9 million) U.S. Private Equity Group Blackstone Group LLP Bought Singapore-Listed Croesus Retail Trust Date of Completion: October 2017 Deal Valuation: S$900.6 million (US$650 million) ESR-REIT merged with Viva Industrial Trust REITs to better compete against private capital and foreign REITs when making real estate acquisitions. According to KPMG, the industry’s market value has grown at a 22% compounded annual growth rate over the last ten years. REITs’ investment mandates have expanded far beyond Singapore’s shores. To date, 80% of S-REITs and property trusts own offshore assets across the Asia Pacific, South Asia, North America and Europe. Larger REITs will have better acquisition competitiveness, particularly against private market players, says Siah. “The confluence of relative trading prices, which facilitates scrip-for- scrip mergers, the low-interest- rate environment and S-REIT sponsors’ willingness to merge their platforms has helped to drive consolidation activity,” he adds. Date of Completion: October 2018 Deal Valuation: S$936.75 million (US$ 674.93 million) Emerging Asset Size After Transaction: S$3 billion (US$2.16 billion) OUE Commercial REIT (OUE C-REIT) merged with OUE Hospitality Trust Date of Completion: September 2019 Deal Valuation: S$1.49 billion (US$1.07 billion) Emerging Asset Size After Transaction: S$6.8 billion (US$4.9 billion) PRINCIPAL SPONSOR 28-30 OCTOBER 2020 Ascott Residence Trust (Ascott REIT) merged with Ascendas Hospitality Trust (A-HTrust) Date of Completion: Before the end of 2019 Deal Valuation: S$1.2 billion (US$860 million) Emerging Asset Size After Transaction: S$7.6 billion (US$5.48 billion) as at March 31, 2019 16 17