Two CapitaLand REITs to merge in $6 billion deal

Industry: ,    January, 2020

CapitaLand said on Wednesday it had proposed the merger of CapitaLand Mall Trust  and CapitaLand Commercial Trust in a cash-and-stock deal valued at S$8.2 billion ($6.1 billion), adding to sector consolidation.

CapitaLand Mall will acquire CapitaLand Commercial units for S$999.1 million in cash and 2,777.5 million new units issued at S$2.59 apiece.

CapitaLand Mall holds a portfolio of shopping centers in Singapore, while CapitaLand Commercial is the city-state’s largest office landlord. CapitaLand owns about 28.48% of CapitaLand Mall and 29.37% of CapitaLand Commercial.

The new combined trust called CapitaLand Integrated Commercial Trust is expected to become the third-largest real estate investment trust in Asia-Pacific with a market capitalization of about S$16.8 billion and a combined property value of about S$22.9 billion.