SINGAPORE (Jan 29): ESR-REIT has announced details of a plans for its merger with Viva Industrial Trust (VIT).

See: ESR-REIT, Viva Industrial Trust said to plan merger

The proposed merger will be made through the acquisition by ESR-REIT of all the VIT stapled securities held by its stapled securityholders.

The consideration will be satisfied by the issue of new ESR-REIT units to VIT stapled securityholders.

The enlarged ESR-REIT is expected to become the fourth largest industrial S-REIT, with its overall asset size increasing to $3.0 billion.

"The proposed merger is part of ESR-REIT's strategy to create a diversified, sizeable and liquid Pan-Asia developer-backed Singapore-based industrial property REIT with greater financial strength, larger market capitalisation and higher liquidity," says ESR-REIT in its announcement.

Presently, Chinese property tycoon Tong Jinquan is the biggest investor in both trusts, data compiled by Bloomberg show.

In a separate statement, VIT said it had received the merger proposal.

Both companies cautioned that there was no certainty of a deal.

ESR-REIT is valued at $747 million and VIT has a market value of $907 million.

Units in ESR REIT and VIT last traded at 57 cents and 95 cents respectively before the trading halt for the announcement.

See also: Viva Industrial Trust ended 4Q strong… and more