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Second time's the charm as ESR-Reit, Sabana Reit revive merger proposal

Enlarged Reit will have market value of S$1.8b and free float of S$1.3b, increasing its shot at EPRA NAREIT index inclusion

Nisha Ramchandani

Published Thu, Jul 16, 2020 · 09:50 PM

ESR-Reit

Singapore

ESR-REIT and Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) are taking another crack at a merger after earlier talks in 2017 fell through, seeking to build an enlarged entity to stave off headwinds in a post-Covid world.

The proposal is the latest among S-Reits, with recent mergers including OUE Commercial Reit and OUE Hospitality as well as Ascott Residence Trust and Ascendas Hospitality Trust.

Under the proposed merger, by way of a trust scheme of arrangement, ESR-Reit will acquire all units in Sabana Reit in exchange for new units in ESR-R…