The Singapore Exchange (SGX) has granted approval in-principle to the manager of CapitaLand Mall Trust (CMT) to list up to 2.78 billion new units of CMT on August 28.

The units are to be issued as part consideration for the merger between CMT and CapitaLand Commercial Trust (CCT).

SGX, on the same day, said that it does not object to the delisting of CCT from the official list of the SGX-ST, once the trust scheme becomes effective.

On January 22, CMT and CCT announced their proposal to merge into a diversified commercial real estate investment trust (REIT). The enlarged REIT will be named CapitaLand Integrated Commercial Trust (CICT), and is expected to have a market capitalisation of $16.8 billion, and combined property value of $22.9 billion.

See: CMT, CCT propose merger to create largest REIT in Singapore, third largest in Asia Pacific

Following the merger, CICT will be the largest REIT in Singapore and the third largest in Asia Pacific.

As at 10.04, units in CMT were trading 4 cents higher, or 2.1% up, at $1.94. Units in CCT were trading 2 cents higher, or 1.2% up, at $1.66.