ESR-Reit and VIT Merger Could Lead to More Industrial Reit Deals

in Opinion

The Business Times has an in depth analysis on the possible future M&A and consolidation in the Singapore REIT sector, following the ESR & VIT merger announcement.

WITH the proposed merger of ESR-Reit and Viva Industrial Trust (VIT) to create Singapore's fourth-largest industrial Reit, more mergers and acquisitions (M&As) in the industrial Reit space could be on the way, say analysts.

This marriage - creating a combined S$33 billion in assets - could become the first in the history of Singapore Reits (S-Reits). If it goes through, it will happen by way of a trust scheme of arrangement, under which ESR-Reit's manager will become the manager of the enlarged trust; VIT will be de-listed from the Singapore bourse.