Activist Fund Urges Singapore REIT Merger to Boost Value

News about Ascott Residence 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.”

Ascott Residence Trust
Price1.320 SGD
NAV1.270 SGD
Yield (4 quarters)5.61%
Gearing32.8%