Unitholders of Soilbuild Business Space REIT (SB REIT) had reason to cheer on Dec 14. Lim Chap Huat — founder and chairman of SB REIT sponsor Soilbuild Group Holdings — together with a unit of Blackstone Real Estate have teamed up in a joint venture which is 30.28% held by Lim and 69.72% held by Blackstone. Their aim: To take SB REIT private. The proposed privatisation and delisting of SB REIT is to be effected by way of a trust scheme of arrangement.

SB REIT owns 10 properties in Singapore and three in Australia. As part of the transaction, SB REIT’s three Australian properties will be divested to a unit of Blackstone. The exit price on offer is $0.55 per unit.

The price represents a premium of approximately 34.5%, 34.8%, 53.2% and 29.1% over the volume-weighted average price of $0.409, $0.408, $0.359 and $0.426 per unit respectively for the one-month, three-month, six-month and 12-month period up to and including Aug 31, 2020, being the last full trading day immediately prior to the holding announcement which had said the sponsor was in talks over a transaction.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook