Singapore’s ESR and Sabana REIT propose merger amid pandemic
Category: #business  By Mateen Dalal  Date: 2020-07-17
  • share
  • Twitter
  • Facebook
  • LinkedIn

Singapore’s ESR and Sabana REIT propose merger amid pandemic

Although the economic impact of the ongoing COVID-19 has significantly impacted prospects for Singapores REITs (Real Estate Investment Trusts), it seems that some resilient spots in the real estate sector will remain where they were. In the latest string of consolidation in Singapore REIT landscape, ESR-REIT, a leading Singapore-focused industrial REIT, has reportedly announced that it will buy Sabana Shari’ah Compliant Industrial REIT in the deal that will create nation’s fifth-biggest industrial REIT by assets.

As per the joint statement, each Sabana unit holder will get 94 new units of ESR-REIT for every 100 units of Sabana. The joint company will have total assets worth approx. USD 2.94 billion. The two companies had also tried to merge in 2017, but the deal didn’t conclude at that time.

Speaking on the merger, Mr. Adrian Chui, Executive Director and CEO of ESR-REIT said that the bigger scale of the enlarged REIT diversifies its portfolio, decrease risks, and improves its resilience, particularly in view of the on-going COVID-19 pandemic.

Mr. Donald Han, CEO of Sabana REIT manager said that the joint company would have access to a pipeline of assets worth more than USD 22 billion in the market where top-notch logistics properties are increasingly scarce.

Mr. Han added that this merger has helped companies to capitalize on more expansion opportunities and contribute to the continuous growth of the industrial sector as the global economy emerges from the ongoing COVID-19 pandemic.

For the record, Singapore’s ESR-REIT is backed by e-Shang Redwood –a pan-Asia logistics real estate developer. It also owns few shares in Sabana.

The on-going coronavirus pandemic has significantly impacted the construction and hospitality sectors in Singapore, pushing the trade-reliant economy into recession. In the recent statement, the Ministry of Trade and Industry said that GDP (Gross Domestic Product) of the nation is decreased by 41.2% in the last three months ending June. The grim numbers for Singapore’s economy signal the worldwide impact of COVID-19 pandemic and point to an arduous road ahead.

Source Credit - https://www.channelnewsasia.com/news/business/singapore-real-estate-investment-trusts-esr-sabana-merge-reit-12936890

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More

More News By Mateen Dalal

Alphabet’s Google to face lawsuit from NLRB for violating labor laws
Alphabet’s Google to face lawsuit from NLRB for violating labor laws
By Mateen Dalal

In a recent turn of events, U.S. government body National Labor Relations Board (NLRB) has reportedly issued a complaint against American multinational technology company, Google LLC for unlawfully monitoring as well as questioning its workers and su...

Britain’s CMA to levy tougher competition rules on Google and Facebook
Britain’s CMA to levy tougher competition rules on Google and Facebook
By Mateen Dalal

Facebook and Google accounted for around 80% of the total 14 billion pounds spent on digital advertising in 2019. MOW has reportedly accused Google of modifying its Chromium developer tools and Chrome browser to get greater control over advertiser...

Amazon, U.S. Government team up to prevent sale of counterfeit goods
Amazon, U.S. Government team up to prevent sale of counterfeit goods
By Mateen Dalal

According to reliable sources, Washington-headquartered American multinational technology company, Amazon.com Inc has reportedly initiated a joint venture with the U.S. government’s counterfeit agency, the IPR Center (National Intellectual Prop...