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. CMT will pay $2.1238 for each CCT unit comprising 0.72 new CMT units and $0.259 cash.
The total consideration of $8,192.8 million comprises 2,777.5 million new CMT units at an issue price of $2.59 each or $7,193.7 million (88% of total price), and cash consideration of $999.1 million (12% of total price).
The merged entity will double in size in terms of AUM to $22.9 billion and its market cap will be $16.8 billion, making it Asia-Pac’s third largest REIT, and obviously the largest S-REIT by quite a large margin. Both CMT and CCT are in important indices such as MSCI, Straits Times Index and FTSE EPRA NAREIT Index. CICT would just be larger component in indices based on market cap.