SINGAPORE: Singapore’s ESR-REIT has proposed to buy ARA LOGOS Logistics Trust for about S$1.4 billion ($1.04 billion), their managers said on Friday, adding to consolidation among the city-state’s real estate investment trusts (REITs).
ESR-REIT will buy all of ARA LOGOS units for S$0.95 a piece in the cash and stock deal.
The combined ESR-LOGOS REIT will hold a portfolio of business parks, logistics, warehouse and industrial properties with total assets of about S$5.4 billion in Singapore and Australia.
In recent years, consolidation in the sector have included OUE Commercial REIT buying OUE Hospitality Trust and the merger of two Frasers REITS to create Frasers Logistics & Commercial Trust.
Citigroup Global Markets Singapore and Maybank Kim Eng Securities are the financial advisers to ESR-REIT on the deal. ARA LOGOS is advised by BofA Securities and DBS Bank.
ARA LOGOS units closed at S$0.935 on Thursday, while those of ESR-REIT’s ended at S$0.465. Trading in units of both REITs were halted on Friday morning.