Soilbuild Group chairman, Blackstone to privatise SB REIT

It will be done through a trust scheme of arrangement.

Soilbuild Group Holdings (SBGH) co-founder Lim Chap Huat and Blackstone Real Estate have announced the proposed privatisation and delisting of Soilbuild Business Space REIT (SB REIT) through a trust scheme of arrangement at $0.55 in cash per unit.

Clay Holdings III, a newly incorporated entity formed for trust scheme purposes, is the offeror. Its owners are Clay Holdings II which is owned by Lim, and Clay Holdings I, an entity established by funds managed by Blackstone Real Estate affiliates. SBGH is the sponsor of SB REIT.

The scheme consideration represents a premium of about 34.5%, 34.8%, 53.2%, and 29.1% over the volume-weighted average price per SB REIT unit for the one-month, three-month, six-month, and 12-month period up to and including 31 August, respectively.

The manager said that the scheme consideration also implies a price adjusted net asset value multiple of 0.98 to 1.00 times, which exceeds SB REIT’s historical averages.

“Given the various challenges and constraints faced by SB REIT, we have considered many options and discussed potential strategic transactions, including a privatisation of SB REIT, with various parties, comprising private equity firms, real estate funds, and real estate developers,” Lim said.

The trust scheme is subject to the Court and SB unitholders’ approval and customary conditions.