CCT: Merger with CMT is between two equals, not a takeover

CAPITALAND Commercial Trust (CCT) unitholders have had gripes about the terms of its proposed merger with CapitaLand Mall Trust (CMT), but the CEO of its manager Kevin Chee says that all these factors have to be looked at from the perspective this is "a strategic merger of equals . . . not a case of one party buying out the other party like in a takeover".

For instance, some CCT unitholders feel that the exchange ratio should weigh more in favour of CCT unitholders, given the comparatively more dismal outlook for the retail sector. They have also questioned why the combined real estate investment trust (Reit) - assuming the merger succeeds - will adopt CMT's fee structure, given that office properties require less intensive management than retail malls. There are also other investors who say they will shun the deal because they want to hold onto the pure play office exposure that CCT affords.

In an interview with The Business Times at Capital Tower, where the show gallery for its upcoming development CapitaSpring is located, Mr Chee said: "It's a case of bringing together two best-in-class platforms to create something bigger, better, stronger, more resilient and more efficient.