Singapore-based ESR-REIT has plans to merge with rival Viva Industrial Trust to create the fourth largest industrial real estate investment trust in the city-state, with approximately $2.23 billion in assets.
Following the merger, the combined portfolio will consist of 56 properties with a total gross floor area of 13.6 million square feet.
“Size does matter for REITs. This merger will be a milestone transaction that will create a portfolio that is stronger, more resilient and better-diversified,” said Adrian Chui, CEO of ESR-REIT’s manager. “Leveraging our respective capabilities in operational and capital management, we will be in a strong position to deliver value to unitholders.”
ESR Funds Management will be the manager of the enlarged trust.
The merger is expected to be completed by the third quarter 2018.
