Merits of Mapletree merger must be seen through longer-term lens

AS the world prepared on Dec 31 (Friday) to join in a chorus of Auld Lang Syne to welcome the new year, the managers of Mapletree Commercial Trust (MCT) N2IU and Mapletree North Asia Commercial Trust (MNACT) RW0U were singing a different tune.

The 2 Mapletree-linked real estate investment trusts (Reits) proposed to merge in a S$4.2 billion deal that will see the combined entity leapfrog its way to become the seventh largest Reit in Asia with a theoretical market capitalisation of S$10.5 billion.

To be named Mapletree Pan Asia Commercial Trust (MPACT), the merged entity will have assets under management (AUM) of approximately S$17.1 billion - combining MCT's 5 Singapore assets with MNACT's 13 properties in China, Hong Kong, Japan and South Korea.