Singapore’s CapitaLand is proposing to merge its two largest listed vehicles to create a S$22.9bn (€15.3bn) property platform.
Subject to approval, CapitaLand Mall Trust (CMT) will buy CapitaLand Commercial Trust (CCT) in an S$8.27bn cash and stock offer to create CapitaLand Integrated Commercial Trust (CICT).
CapiltaLand will retain its sponsor stake of about 29.1% in CICT which will have a S$16.8bn market capitalisation.
Upon completion of the merger, CICT will become the third-largest real estate investment trust in the Asia-Pacific region and will be able to undertake up to S$4.6bn worth of overseas acquisitions in developed countries.
Tony Tan, CEO CapitaLand Mall Trust, said: “By coming together, we are not diluting our presence in Singapore.
“In fact, the enlarged entity will still be predominantly Singapore-focussed. (But) we will have the leeway to look to overseas investment,” Tan said.
Jonathan Yap, president, CapitaLand Financial, CapitaLand Group, said: “CICT’s enlarged scale and enhanced resilience will appeal to investors who want to invest in the largest proxy REIT for best-in-class Singapore commercial real estate.”