Since the all-cash offer by Mapletree Commercial Trust for Mapletree North Asia Commercial Trust - funded by sponsor Mapletree Investments - and the all cash offer for the privatisation of Frasers Hospitality Trust by Frasers Property, market watchers believe that it is highly unlikely the next REIT merger will be an offer that comprises units of the acquiring REIT.
There are a few REITs that need size and liquidity; and they surely need lower costs of capital. These would include, in particular, the REITs with all-foreign assets such as REITs with Chinese properties listed on SGX, REITs with US properties listed on SGX and REITs with only European Union properties listed on SGX (there is only one).
The next mega-REIT merger, contrary to market watcher wisdom, is indeed an all-share merger. Prologis and Duke Realty Corporation announced on June 13, that the two companies have entered into a definitive merger agreement by which Prologis will acquire Duke Realty in an all-stock transaction, valued at approximately US$26 billion, including debt. The respective board of directors for Prologis and Duke Realty have unanimously approved the transaction.
