Source of article: Business Times
Writer credits: Jude Chan
The Singapore market saw 8 IPOs in 2021. The 8 listings raised around S$1.7 billion, vis-a-vis the 11 listings that raised S$1.4 billion in 2020. Real estate investment trusts (Reits) continue to drive listings in Singapore. Digital Core Reit anchored the Singapore bourse with its trading debut on Dec 6, 2021.
It is envisaged that the S-REITs industry will continue to pursue growth and consolidation through mergers and acquisitions.
ESR-Reit’s proposed merger with Sabana Industrial Reit in 2021 was scuttled by disgruntled unitholders.
A lesson from the unsuccessful merger is the need to consider the composition of unitholders and the importance of engaging with minority unit-holders.
In my interview with the Singapore Business Times (published on 6 January 2022), I shared my views on the issues and challenges in connection with the M&A of REIT transactions and why some deals were more successful than others.
A closer look at the ESR-Sabana deal.
My post from LinkedIn is here.