(July 8): No sooner had CapitaLand and Ascendas Singbridge completed an $11 billion merger on July 1 than the enlarged group announced the merger between CapitaLand’s two hospitality trusts — Ascott Residence Trust (ART) and Ascendas Hospitality Trust (AHT) — on July 3. The combined real estate investment trust will own 88 properties with 16,000 units in 39 cities in 15 countries valued at $7.6 billion.
While the merger itself was widely anticipated, the speed at which it was announced took many by surprise at the hastily called analyst and media briefing on July 3. This is the S-REIT sector’s third merger in a year. Last November, ESR-REIT completed its merger with Viva Industrial Trust, and OUE Commercial REIT is merging with OUE Hospitality Trust.
