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Why I Sold Off ESR-REIT After Its Merger With Viva Industrial Trust
By Heartland Boy  •  April 6, 2019

Heartland Boy originally owned Viva Industrial Trust (‘VIT’) when he purchased some units at 76 cents back in January 2017. ESR-REIT acquired VIT at $0.96 per unit, of which 10% was paid in cash and the rest in new ESR-REIT units issued at $0.54. That is the background of how Heartland Boy came to own ESR-REIT, ticker code J91U, in his portfolio. On 26 March 2019, he divested all his shareholding in ESR-REIT at a unit price of $0.535. After conducting a review of its short-term outlook, here are the reasons why he sold off ESR-REIT after its merger with Viva Industrial Trust.

1. Ensnared In Hyflux’s Woes

Nope, ESR REIT did not subscribe to Hyflux’s preferential shares or bonds. Nevertheless, it did provide Hyflux some liquidity by purchasing 8 Tuas South Lane in a sale and leaseback transaction for $95 million back in Dec 2017. This meant that

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By Heartland Boy
Heartland Boy is a young working adult who pretends to be competent in the real estate industry despite graduating with only a Business Management degree. Outside of work, he analyses stocks, reits and property for investment to build passive income. He is also a stickler for all things that represent value-for-money.
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