OCBC recommends ESR-REIT shareholders to approve ARA merger

The bank said the merger is crucial in the REIT sector.

In a report, OCBC Investment Research suggested that ESR-REIT shareholders accept the merger with ARA LOGOS Logistics Trust.

The two trusts jointly announced their proposed merger on 15 October. It will be named ESR-LOGOS REIT. ESR-REIT will acquire all units of ARA LOGOS via a combination of cash and new units in ESR-REIT for a total consideration of around $1.4b based on the scheme consideration of $0.95 for each unit.

OCBC said they are largely positive on this proposed merger, given the importance of scale in the REIT sector with potentially better trading liquidity, lower cost of capital, and greater feasibility to acquire larger properties to drive inorganic growth. 

The proposed merger is conditional upon the completion of ESR Cayman and ARA Asset Management's merger and requires both ESR-REIT and ARA LOGOS' unitholders' approvals, which will be held in early January 2022. 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Singtel had the most growth for the day.
This is despite its improved performance in two categories.
The expected increase will be driven by three factors.
The two also discussed post-pandemic recovery.
It also recorded a strong performance for H1 2021, despite a net loss of $150.6m.
Jigger & Pony found itself retaining its ninth ranking.
The moderate increase was driven by expansions in five out of six indicators.
Perpetual (Asia) Limited is on the other end of the agreement, as the purchaser.
CLSA will serve as issue manager of the proposed spin-off and listing.
Yangzijiang Shipbuilding had the most growth for the day.
The new facility is the first of its kind in Singapore.
Proceeds will be used for Olam's general corporate purposes.
The completion of divestment will take place during the first quarter of 2022.
This is to raise gross proceeds of more than $200m.