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CMT and CCT merge to form Singapore’s largest REIT
Investors - JANUARY 22, 2020

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CMT and CCT merge to form Singapore’s largest REIT

by Andrea Zander

CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) have plans to merge to create the commercial REIT CapitaLand Integrated Commercial Trust (CICT).

The REIT is set to be the largest one in Singapore and the third largest in Asia Pacific with a market capitalization of S$16.8 billion ($12.45 billion) and combined property value of S$22.9 billion ($16.98 billion).

CMT will acquire all units of CCT for a total consideration comprising approximately 88 percent in CMT units and 12 percent in cash. The consideration per CCT unit comprises 0.720 new CMT units and $0.259 in cash, implying a gross exchange ratio of 0.820.

CapitaLand will retain its sponsor stake of approximately 29.1 percent in the merged entity. The group will now have a total of three S-REITs with global or developed market mandates listed on SGX, including Ascendas Real Estate Investment Trust (Ascendas Reit) and Ascott Residence Trust (ART).

 

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