The benefits of a larger and more diversified asset base under the merged entity are manifold and immediate. In addition, while Singapore remains the predominant focus, the merged entity can undertake overseas acquisitions in developed countries of up to 20% of property value or S$4.6 billion.

Fret not, ask our community here!Still have more questions after reading the article? The enlarged REIT (based on pro forma calculations) will have a NAV per unit of $2.11. As of today, about 29% of the combined portfolio value of the two REITs already features integrated retail and office components. Our complementary skill sets will strengthen the ability of the merged entity to capitalise on future growth opportunities as commercial development trends towards mixed-use integrating work-live-play offerings. The merger will be carried out by CapitaLand Mall Trust acquiring all CapitaLand Commercial Trust units by way of a trust scheme of arrangement. The greater financial flexibility will strengthen its position to take on large-scale integrated developments that the standalone entities would otherwise not be able to. So, there’s room for CapitaLand Commercial Trust’s income to grow due to the new acquisition.Further down the road, there’s a possibility of higher income contribution from Six Battery Road and 21 Collyer Quay after completion of asset enhancement initiatives in 2021.There’s also currently-under-development CapitaSpring, which is expected to contribute from 2022. SINGAPORE (Jan 22): CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) have jointly proposed the merger of their two REITs to create a diversified commercial REIT, CapitaLand Integrated Commercial Trust (CICT), through a trust scheme of arrangement. This … Key Takeaways from CapitaLand Commercial Trust & CapitaLand … Based on similar assumptions, the deal is NAV-accretive. To summarise, CapitaLand Mall Trust will be offering unitholders of CapitaLand Commercial Trust, for every unit of the REIT they have, 0.720 units of CapitaLand Mall Trust, plus S$0.2590 in cash. In the theme where “big is better” CapitaLand (SGX:C31)-managed CapitaLand Mall Trust (SGX:C38U) and CapitaLand Commercial Trust (SGX:C61U) are proposing to merge to form a REIT behemoth - CapitaLand Integrated Commercial Trust (CICT) - with a combined market cap of c.S$16.8bn and an AUM of c.S$23bn. (Note: The screenshot under point 4 above shows interest cover ratio as 5.8x as the formula used is different. Our capital can thus be efficiently deployed to where we see the best risk-return opportunities across asset classes and markets.” Mr Kevin Chee, CEO of CCTML, said: “The Proposed Merger is a new milestone in the development of CCT, having grown over the years through proactive portfolio reconstitution and developments. That works out to around $2.131 for each CCT unit. CapitaLand Commercial Trust has a 45% interest in CapitaSpring.At CapitaLand Commercial Trust’s unit price of S$2.09, it is valued at a PB ratio of 1.1x.Over the past five years, its average PB ratio was slightly below 1x.Since CapitaLand Commercial Trust’s current valuation is above the average, it looks expensive to me right now.At CapitaLand Commercial Trust’s unit price of S$2.09, it has a distribution yield of 4.2%, which is too low for my liking.Still have more questions after reading the article? Asset concentration risk will also be greatly reduced. The distribution yield looks … 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. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. The combination of the blue-chip portfolios from CMT and CCT will lead to a more balanced exposure across office, retail and integrated developments, providing stability for CICT’s overall portfolio performance and income. The combined size and sector diversification also result in a more resilient platform that will improve the merged entity’s ability to invest sustainably through the cycles.CICT will also enjoy increased flexibility to undertake portfolio rejuvenation and redevelopment with reduced impact on income. This is a game-changer that will propel both CMT and CCT towards a higher and more sustainable growth trajectory beyond what is achievable with each REIT’s current focus on a single asset class. CCT unitholders also have a lot to digest, and they will need to assess if they are comfortable that the deal will be dilutive to them from a book value perspective.Your daily good stuff - AsiaOne stories delivered straight to your inboxAsiaOne Online Pte Ltd. Company registration NO.201815023K Upon approval and completion of the merger, the REIT will be renamed to CapitaLand Integrated Commercial Trust (CICT). Limited and Credit Suisse (Singapore) Limited are the financial advisers to the managers of CMT and CCT respectively for the Proposed Merger.

CapitaLand Group - DBS Research 2020-01-23: A Whole New World. It will become the largest proxy for Singapore commercial real estate with a portfolio of 24Ms Teo Swee Lian, Chairman of CMTML, said: “As the respective best-in-class players in retail and office with proven track records in value creation, CMT and CCT are heading to the Proposed Merger from a position of strength.