Two of the oldest REITs listed on SGX have announced a merger on 22 January 2020. CapitaLand Commercial Trust(SGX: C61U), or CCT, and CapitaLand Mall Trust (SGX: C38U), or CMT, announced that they would merge by way of a trust scheme arrangement. Both REITs are managed by real estate giant CapitaLand Limited (SGX: C31).

This news is hardly surprising considering that it comes hot off the heels of another recently-announced REIT merger — that of Frasers Logistics & Industrial Trust (SGX: BUOU), or FLT, and Frasers Commercial Trust (SGX: ND8U), or FCOT. This December 2019 announcement continues the trend of REIT mergers within Singapore as the prevailing belief continues to be “bigger is better”.

Transaction Summary

CMT will acquire all the issued and paid-up units of CCT for a scheme consideration that comprises two components — a shares component consisting of new CMT units, and a cash component. Each