CONSOLIDATION CONTINUES AMONG S-REITS

Six notable REIT mergers commenced in Singapore in the last three years . The proposed merger between ESR-REIT and ARA LOGOS Logistics Trust is the latest .

Source : Photo by PublicDomainPictures from Pixabay

In the latest mergers and acquisitions , Hong Kong-listed ESR Cayman has agreed to buy John Lim ’ s ARA Asset Management for US $ 5.2 billion , a move that will create the largest real asset manager in the Asia-Pacific with a combined asset under management of US $ 131 billion .

The acquisition will lead to a merger of ESR REIT and ARA Logos

Logistics Trust , whose respective sponsors are ESR Cayman and ARA Asset Management .

ARA Logos will be delisted and becomes part of ESR REIT . The enlarged REIT will be named ESR-LOGOS REIT , and it will be Singapore ’ s ninth largest REIT with an AUM of S $ 5.4 billion . Analysts were largely positive on the merger . The post-merger