Warburg-backed ESR-REIT to merge with Viva Industrial Trust

120 Pioneer Road, ESR-REIT

Singapore-listed and Warbug Pincus-backed pan-Asia logistics venture ESR-REIT has announced to merge with rival Viva Industrial Trust to create the fourth largest industrial real estate investment trust in the city-state with approximately S$3 billion ($2.23 billion) in assets, according to a filing with the stock exchange.

“Size does matter for REITs. This merger will…create a portfolio that is stronger, more resilient and better diversified.” said ESR-REIT Manager’s CEO and executive director Adrian Chui in the press release.

Following the merger, the combined portfolio will consist of 56 properties with a total gross floor area of 13.6 million sq ft allowing it to capture a larger segment of industrial tenants.

Viva Industrial Trust Manager CEO and executive director Wilson Ang commented: “We will benefit from the support of a strong Pan-Asian developer-sponsor whose financial strength, sizeable asset portfolio and regional presence will allow us to fast-track our growth aspirations.”

The merger via a trust scheme is subject to shareholders’ approval and sanction by the Singapore Court.

“The scheme consideration payable to Viva Industrial Trust stapled security holders is S$0.96 per stapled security on an ex-distribution basis, providing Viva Industrial Trust with an implied equity value of about S$936.7 million. The scheme consideration will be satisfied 10% in cash and 90% through the issuance of new ESR-REIT units,” as per the announcement.

Citigroup Global Markets Singapore Pte. Ltd., RHB Securities Singapore Pte. Ltd. and United Overseas Bank Limited advised ESR-REIT while BofA Merrill Lynch was the sole financial adviser to VIT on the merger.

Also read:

Warburg-backed ESR-REIT in talks to merge with Viva to expand SG portfolio

Warburg-backed ESR, Beijing Properties set up fund to buy realty assets worth $1b

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.