The Singapore REIT (S-REIT) space in 2021 is ending with a blockbuster merger that will form a behemoth that is likely to be one of the top 3 REITs in Singapore and top 10 REIT in Asia. On 31 December 2021, Mapletree Commercial Trust (MCT) has announced a proposed merger with Mapletree North Asia Commercial Trust (MNACT) which will be effected through the acquisition by MCT of MNACT. The combined REIT which will be named Mapletree Pan Asia Commercial Trust (MPACT) will have 18 properties valued at $17.1 billion.

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Source: Mapletree slides on 31 December 2021

S-REIT mergers are common

REIT mergers have been aplenty in Singapore as it brings scale, attracting institutional investment and benefits such as lowered cost of funds. Some noteworthy examples of S-REIT mergers in the past two years such as the combination of CMT & CCT which formed CICT has been...