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Activist fund calls for merger of Ascendas Hospitality Trust, Ascott Reit

Quarz says A-H Trust is undervalued due to its suboptimal size, and proposes a merger by way of a trust scheme

Published Thu, Apr 25, 2019 · 09:50 PM

Singapore

REAL estate investment trust (Reit) mergers are the flavour of the season, and activist fund Quarz Capital Management is advocating a union of CapitaLand's two hospitality trusts.

In a letter on Thursday, Quarz argued that Ascendas Hospitality Trust (A-H Trust) is undervalued due to its "suboptimal size", and should be merged with larger peer Ascott Reit, which CapitaLand also controls.