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M1GU - Sabana Shariah Compliant Industrial Real Estate Investment Trust News Story

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Sector
Financials
Size
Small Cap
Market Cap £238.4m
Enterprise Value £428.6m
Revenue £38.7m
Position in Universe th /

Warburg Pincus-backed Singapore REITs ESR and Sabana propose to merge

SINGAPORE, July 16 (Reuters) - Singapore's ESR-REIT
 ESRR.SI  has agreed to buy Sabana REIT  SABA.SI  in a deal that
will create the city-state's fifth-largest industrial real
estate investment trust by assets, adding to a wave of
consolidation in the sector. 
    Each Sabana unitholder will receive 94 new ESR-REIT units
for every 100 Sabana Units held, the companies said in a joint
statement on Thursday. The merged entity will have total assets
worth about S$4.1 billion ($3 billion), they said. 
    The two firms had tried to merge in 2017, but talks were
called off. 
    ESR-REIT is backed by Asian logistics developer e-Shang
Redwood (ESR) - a venture of private equity firm Warburg Pincus
and global investors. e-Shang Redwood also owns shares in
Sabana. 
     Other recent REIT mergers in Singapore include OUE
Commercial REIT  OUEC.SI  buying OUE Hospitality Trust. 
    In 2018, ESR-REIT merged with Viva Industrial Trust. In
early 2019, CapitaLand  CATL.SI  agreed to pay S$6 billion to
buy logistics and industrial assets from state investor Temasek.
  
    Trading in units of ESR and Sabana were halted on Thursday
morning.
    Citigroup Global Markets Singapore, Maybank Kim Eng
Securities, RHB Securities Singapore, and United Overseas Bank
Ltd are the financial advisers to ESR on the deal. Credit Suisse
(Singapore) Ltd and The Hongkong and Shanghai Banking Corp Ltd,
Singapore, are advising Sabana. 
    
    ($1 = 1.3893 Singapore dollars)

 (Reporting by Aradhana Aravindan in Singapore; Editing by
Stephen Coates)
 ((aradhana.aravindan@thomsonreuters.com;))
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