Disgruntled ARA Logos unitholders should vote

Reit mergers are driven by property market dynamics and shifting priorites of real estate groups rather than the pursuit of size

Ben Paul

Published Mon, Nov 8, 2021 · 05:50 AM

Mark to Market

SOME readers of The Business Times took umbrage at this column's suggestion a fortnight ago that minority unitholders of ARA Logos Logistics Trust might choose to support its proposed merger with ESR-Reit.

The point I was making was that once ESR Cayman acquires ARA Asset Management, there is likely to be uncertainty as to which of the two real estate investment trusts (Reits) will benefit from the asset pipeline of their combined parent group. A merger of ARA Logos and ESR-Reit would negate this issue of their overlapping mandates.

The problem is that the terms of the proposed merger obviously fav…