Photo credit: CapitaLand Mall Trust’s website. On 22 January 2020, CapitaLand Mall Trust (SGX: C38U), the owner of 15 shopping malls in Singapore, proposed a merger with CapitaLand Commercial Trust (SGX: C61U), its office property-owning counterpart. The new entity will be called CapitaLand Integrated Commercial Trust and will have to be approved by unitholders With the date of both REITs’ EGMs looming, here are seven key points that investors should take note of.

1. Asia’s third-largest real estate investment trust (REIT)

The merger will propel the combined entity to become Asia’s third-largest REIT, behind Hong Kong’s Link REIT (SEHK: 0823) and Australia’s Scentre Group (ASE: SGC). Source: CapitaLand Mall Trust’s announcement The merged entity will also be, by far, the largest REIT in Singapore with the second largest being Ascendas REIT (SGX: A17U), another CapitaLand-owned REIT.

2. Stronger together

Size alone matters little if the merged entity does not take advantage of it. In this case, the proposed combination does provide the combined REIT with the financial muscle to...