December 2, 2019 / 3:50 AM / 5 days ago

Frasers Property to merge two listed trusts into new $4bn entity

SINGAPORE, Dec 2 (Reuters) - Frasers Property Ltd said on Monday it planned to merge two of its Singapore-listed real estate investment trusts (REITs) to create an entity that will hold assets worth S$5.7 billion ($4.2 billion).

The proposed merger of Frasers Logistics & Industrial Trust and Frasers Commercial Trust, the latest in a string of consolidation moves in the sector, will cost about S$1.5 billion, mainly via the issuance of new units to existing investors.

“The Enlarged REIT will have a broadened investment mandate to invest in a wider spectrum of asset classes across logistics, industrial, office, business park and commercial properties,” the two trusts said in a joint statement.

The new entity will manage about 2.6 million square metres of space with about 300 tenants in 98 properties spread across five countries, the companies said.

Both trusts are currently managed by subsidiaries of Frasers Property Ltd. ($1 = 1.3639 Singapore dollars) (Reporting by John Geddie; Editing by Sriraj Kalluvila)

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