Search for scale likely to keep S-Reits on M&A prowl

MERGERS and acquisitions (M&A) are likely to continue in the S-Reit sector as Reits chase scale to better compete with rivals.

Monday's proposed union between Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) is the latest in a string of consolidations, serving as a prime example of the advantages that can come with size.

As some analysts have pointed out, the smaller Reits are struggling to grow and pique investor attention when they trade at deep discounts to the big boys.