Soilbuild Group’s executive chairman will team up with Blackstone Group to take its listed unit Soilbuild Business Space REIT private in a S$700.3 million ($524.49 million) deal, the real estate company said on Monday.
Soilbuild Group Executive Chairman Lim Chap Huat and Blackstone are offering S$0.55 per share in cash to take the Singapore-focused company private to help it weather challenging market conditions and an uncertain global economic recovery from the coronavirus fallout.
“Given the various challenges and constraints faced by SB REIT … we believe this proposal by Blackstone presents the best option for minority Soilbuild unitholders based on the offers received,” Huat said in a statement.
As of Dec. 14, Huat and his family collectively own about 30.3% in the real estate firm.
Soilbuild REIT, which was listed on the Singapore exchange in 2013, holds about 13 properties ranging from business parks to industrial complexes – largely in Singapore. The company saw a drop in its local portfolio value at the end of the third quarter due to the impact of the outbreak.
The buyout offer of S$0.55 represents a 7.8% premium to the REIT’s last close on Dec. 8, when shares last traded before a halt.
Soilbuild Group, which owns three properties in Australia, also sold its Australian assets to Blackstone-related entities for A$232.3 million ($175.01 million) on Monday as part of deal conditions.
Source: Reuters.com