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The merged entity will assume the name ESR-Logos REIT, and have a portfolio of logistics properties with total assets of about $5.4 billion.
The managers of ESR-REIT and ARA Logos Logistics Trust have proposed to merge and create a diversified portfolio of logistics properties with total assets of about $5.4 billion.
The proposed merger – to be effected via a trust scheme of arrangement – will result in the merged entity being named ESR-Logos REIT.
Under the proposed merger, ESR-REIT will acquire all units of ARA Logos in a cash-and-share deal valued at $1.4 billion.
Notably, ARA Logos unitholders will receive a scheme consideration of $0.95 for each ARA Logos unit, comprising $0.095 in cash and 1.6765 in new ESR-REIT units (to be issued at $0.51).
Thereafter, ARA Logos – which will become a fully owned sub-trust of ESR-REIT – will be delisted from SGX.
ESR-Logos REIT is expected to be among the top 10 biggest S-REITs “by free float market capitalisation and have greater representation on the FTSE EPRA Nareit Global Developed Index”.
Adrian Chui will serve as the Chief Executive Officer of the E-Log Manager; while Karen Lee will serve as Deputy CEO.
“The proposed merger will also deepen our presence in key Singapore industrial clusters and expand our foothold in new economic hubs in Australia,” said Chui.
Lee, on the other hand, noted that the enlarged asset base under the merged entity would enhance their “financial capacity and flexibility to pursue larger and more sizeable growth opportunities”.
She added that it would also allow them “to conduct active portfolio rebalancing and capital recycling to pursue our supercharged growth trajectory”.
Once the merger is approved, ESR-Logos REIT will hold 87 portfolio properties and 41 fund properties in Australia, comprising a total net leasable area of 2.2 million sq m (24.1 million sq ft).
Citigroup Global Markets Singapore and Maybank Kim Eng Securities are the financial advisers to ESR-REIT, while BofA Securities and DBS are advising ARA Logos.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.