MCT and MNACT have proposed to merge via a SGD4.2b trust scheme of arrangement to create the 7th largest Pan Asian REIT and 3rd largest S-REIT, with a SGD10.5b market cap and a SGD17.1b AUM across Singapore, China, HK, Japan and South Korea. Beyond the strong financial accretion, we see strategic merits from increased AUM diversification, stronger DPU growth, and potentially lower cost of capital. Execution is key, as management will need to prove it can deliver on an expanded growth mandate.