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Warburg Pincus-backed REIT to buy rival in Singapore's first REIT merger

Reuters Published on Fri, May 18, 2018 / 5:20 PM GMT+8

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SINGAPORE (May 18): ESR-REIT will buy rival Viva Industrial Trust in a proposed deal valued at $936.7 million, marking the first consolidation among Singapore's crowded mid-cap real estate investment trusts.

The proposed merger will create the fourth largest industrial REIT in Singapore with about $3.0 billion in assets, the two firms said in a joint statement on Friday.

Under deal terms, Viva security holders will receive $0.96 per stapled security, which will be paid 10% in cash and 90% through the issue of new ESR-REIT units. The proposed deal represents an 8% premium to Viva's closing price on Thursday.