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Synergies ready to be tapped in ESR-REIT and Viva Industrial Trust merger

PC Lee
PC Lee9/17/2018 10:52 AM GMT+08  • 2 min read
Synergies ready to be tapped in ESR-REIT and Viva Industrial Trust merger
SINGAPORE (Sept 17): ESR-REIT will emerge as the fourth largest Singapore-listed industrial REIT with $3 billion in assets after consolidation with Viva Industrial Trust (VIT).
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SINGAPORE (Sept 17): ESR-REIT will emerge as the fourth largest Singapore-listed industrial REIT with $3 billion in assets after consolidation with Viva Industrial Trust (VIT).

The implied acquisition yield of 5.8-5.9% for VIT’s portfolio is at the lower end of peers’ range of 5.1-6.8%, reflecting the acquirer’s optimism over longer-term prospects and synergies that the REIT can extract.

Analysts say within ESR and VIT’s respective asset portfolios lies untapped potential – including at least two assets with unutilised GFA and several others with potential for conversion into higher-spec facilities.

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