On 22 January 2020, CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) announced a proposed merger by way of a trust scheme arrangement. The news should not come as a big surprise to many as there had already been three REIT mergers in Singapore in 2019 alone, and CMT-CCT’s announced merger looks set to become the fourth.
Both CMT and CCT can be considered behemoths in their own right. The former owns 15 quality shopping malls in Singapore located in strategic suburban and downtown areas, with a total property value of S$11.8 billion and a market capitalisation of S$9.55 billion. The latter is Singapore’s first listed commercial REIT with a total of 10 properties (eight in Singapore and two in Germany), with a total property value of S$11.1 billion and market capitalisation of S$8.22 billion.
This merger will create an even bigger giant in the REIT space, with a