Activist Fund Urges Singapore REIT Merger to Boost Value

News about CapitaLand Ascott Trust —

Bloomberg reports that Quarz, an activist fund, is pushing for Ascott REIT and Ascendas Hospitaly REIT to merge:

Ascendas Hospitality Trust and Ascott Residence Trust should join forces to boost shareholder value and avoid potential conflicts following a separate deal in January that will see CapitaLand Ltd. gain ownership of the managers of both REITs, according to Quarz Capital Management Ltd.

An Ascott spokesperson said the overlapping investment mandates of both had been noted. “We shall be considering various options with the objective of maximizing value for our unit holders and will make an announcement when there are material developments.”

CapitaLand Ascott Trust
Price0.890 SGD
NAV1.130 SGD
Yield (4 quarters)7.39%