Mapletree Commercial Trust, Mapletree North Asia Commercial Trust Announce Merger Plan

From Yongchang Chin

Mapletree Commercial Trust and Mapletree North Asia Commercial Trust plan to merge to make the combined company one of the top ten real estate investment trusts in Asia.

Mapletree Commercial will acquire Mapletree North Asia in a cash-and-shares deal for a total of 4.22 billion Singapore dollars ($ 3.1 billion), according to a joint statement. The cash component of the consideration is S $ 417.3 million.

The new company, called Mapletree Pan Asia Commercial REIT, will have a market capitalization of SGD 10.5 billion and assets under management of SGD 17.1 billion. It will hold a portfolio of 18 commercial properties in Singapore, Hong Kong, China, Japan and South Korea.

Mapletree Commercial Shareholders can expect their dividend per Share to increase by 8.9% and net asset value by 6.5% on a pro forma basis, the statement said.

“By merging the two REITs, we can better unlock the upside potential of a multi-geography platform, put the merged company on a new growth path and crystallize MPACT’s position as the unmistakable representative of Asia’s long-term rise,” said Sharon Lim, CEO of the manager by Mapletree Commercial.

“We can also expect immediate benefits, including improved geographic diversification, less concentration of individual assets and better diversification of tenants,” she said.

The proposed merger requires the approval of the shareholders of Mapletree Commercial and Mapletree North Asia. DBS Group Holdings Ltd. and HSBC Holdings PLC advise on the merger.

Write to Yongchang Chin at [email protected]