CMT and CCT merge to form Singapore's largest REIT

It is set to be CapitaLand’s primary investment vehicle for commercial real estate in Singapore.

CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) will form a merger to create the commercial REIT CapitaLand Integrated Commercial Trust (CICT), a news release revealed.

The REIT is set to be the largest one in Singapore and the third largest in the Asia Pacific with a market capitalisation of $16.8b and combined property value of $22.9b.

The proposed merger will be effected by way of a trust scheme of arrangement, with CMT acquiring all units of CCT for a total consideration comprising approximately 88% in CMT units and 12% in cash. The consideration per CCT unit comprises 0.720 new CMT units and $0.259 in cash, implying a gross exchange ratio of 0.820.

CapitaLand will retain its sponsor stake of approximately 29.1%3 in the merged entity.The group will now have a total of three S-REITs with global or developed market mandates listed on SGX, including Ascendas Real Estate Investment Trust (Ascendas Reit) and Ascott Residence Trust (ART).

CICT will be CapitaLand’s primary investment vehicle for commercial real estate in Singapore and other developed markets, whilst Ascendas India Trust, CapitaLand Retail China Trust and CapitaLand Malaysia Mall Trust will continue to be its specialist investment vehicles in India, China and Malaysia, respectively.

CICT brings together CMT’s portfolio of 15 downtown and suburban malls in Singapore with CCT’s portfolio of eight Singaporean and two German prime offices. Around 96% of its asset value is located in the Lion City.