ESR REIT Back at It, Announces Merger With ARA Logos

News about ESR-REIT

After succesfully absorbing Viva Industrial Trust, and failing to merge with Sabana REIT, ESR REIT is still trying to consolidate the industrial REIT segment by announcing this time a merger with ARA Logos Logistics Trust:

The proposed merger, which will result in the merged entity being named ESR-Logos Reit, will be effected by way of a trust scheme of arrangement. ARA Logos unitholders will receive a scheme consideration of S$0.95 per ARA Logos unit - comprising S$0.095 in cash and 1.6765 new ESR-Reit units, to be issued at S$0.51 apiece.

Based on pro forma estimates, the proposed deal will be accretive on both ESR-Reit and ARA Logos' FY2020 distribution per unit (DPU). ESR-Reit's DPU will rise 5.8 per cent to 2.935 Singapore cents from 2.775 cents, while ARA Logos' DPU will increase by 8.2 per cent to 5.512 cents from 5.094 cents.

ESR-REIT
Price0.485 SGD
NAV0.398 SGD
Yield (4 quarters)6.40%
Gearing41.3%