Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) have jointly announce a proposed merger effected by a trust scheme of arrangement to create a flagship commercial REIT:
MNACT Unitholders will receive a scheme consideration of S$1.1949 to be satisfied by either:a) 0.5963 new MCT units at an issue price of S$2.0039 per MNACT unit (scrip only)b) combination of 0.5009 new MCT units and S$0.1912 in cash (scrip and cash)
MCT unitholders is expected to benefit from accretion to DPU and NAV 8.9% and 6.5% respectively on a pro forma basis. The aggregate scheme consideration is S$4,215.6m.
The combined entity Mapletree Pan Asia Commercial Trust will become one of Asia’s top ten largest REIT with market capitalisation of S$10.5b. It will hold a diversified and high quality portfolio of 18 commercial assets across Singapore, China, Hong Kong, Japan and South Korea with AUM of S$17.1b. It will benefit from increased diversification across geographies and asset classes. Its weightage in key indices, such as FTSE EPRA Nareit Developed Index, MSCI Singapore Index and the Straits Times Index, is expected to increase. It will have better financial flexibility and greater debt headroom to pursue larger acquisitions.