ESR-REIT to buy ARA LOGOS for $1 bln as Singapore's REITs consolidate

ESR-REIT

15/10/2021 04:27

SINGAPORE, Oct 15 (Reuters) - Singapore's ESR-REIT  ESRR.SI 
has proposed to buy ARA LOGOS Logistics Trust  ARAL.SI  for
about S$1.4 billion ($1.04 billion), their managers said on
Friday, adding to consolidation among the city-state's real
estate investment trusts (REITs). 
    ESR-REIT will buy all of ARA LOGOS units for S$0.95 a piece
in the cash and stock deal. 
    The combined ESR-LOGOS REIT will hold a portfolio of
business parks, logistics, warehouse and industrial properties
with total assets of about S$5.4 billion in Singapore and
Australia. 
    In recent years, consolidation in the sector have included
OUE Commercial REIT  OUEC.SI  buying OUE Hospitality Trust and
the merger of two Frasers REITS to create Frasers Logistics &
Commercial Trust  FRAE.SI . 
    Citigroup Global Markets Singapore and Maybank Kim Eng
Securities are the financial advisers to ESR-REIT on the deal.  
   ARA LOGOS is advised by BofA Securities and DBS Bank. 
    ARA LOGOS units closed at S$0.935 on Thursday, while those
of ESR-REIT's ended at S$0.465. Trading in units of both REITs
were halted on Friday morning. 
   ($1 = 1.3481 Singapore dollars)

 (Reporting by Chen Lin in Singapore; Editing by Aradhana
Aravindan and Muralikumar Anantharaman)
 ((Lin.Chen@tr.com; Twitter @chenlin_sg;))