capitaland integrated commercial trust share price

We are excited about the prospects for our future and the growth we can deliver for our combined group of unitholders, many of whom already hold stakes in both REITs today.” Mr Soo Kok Leng, Chairman of CCTML, said: “The Proposed Merger is a win-win for both CMT and CCT. CapitaLand Group - DBS Research 2020-01-23: A Whole New World. Based on similar assumptions, the deal is NAV-accretive. CMT is offering to buy each CCT unit for 0.72 new units of itself and $0.259 in cash. Source of the report is credited at the end of article whenever reference is made. The deal will benefit CMT unitholders in terms of both DPU and NAV-accretion, while CCT unitholders will also gain in terms of DPU growth.In addition, the enlarged REIT could theoretically benefit from economies of scale, portfolio diversification, and greater liquidity.That said, I have my doubts on whether it is the best use of capital by CMT due to the purchase price's 17 per cent premium to CCT's book value. For CCT, the contribution decreases from 83% to 43% post-Proposed Merger. Find the latest CapitaCom Trust (C61U.SI) stock quote, history, news and other vital information to help you with your stock trading and investing. Here are the key points that investors should note:Based on pro forma calculations, the merger is distribution per unit-accretive. You will need to make your own independent judgment regarding the analysis. The distribution yield looks … Fret not, ask our community here!Still have more questions after reading the article? Mechanics of the deal The mechanics of the deal will be as follows: CMT will acquire all the issued and paid-up units of CCT, and all CCT unitholders will receive 0.72 new CMT units plus S$0.259 in cash per CCT unit. The new entity - called CapitaLand Integrated Commercial Trust (CICT) - will have a market cap of about $16.8 billion and a total property value of about $22.9 billion. SINGAPORE (Jan 22): CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) have jointly proposed the merger of their two REITs to create a diversified commercial REIT, CapitaLand Integrated Commercial Trust (CICT), through a trust scheme of arrangement.

Its portfolio will include 24 properties valued at $22.9 billion.The best way to analyse such a deal is to look at it from the angle of both parties separately. This is a game-changer that will propel both CMT and CCT towards a higher and more sustainable growth trajectory beyond what is achievable with each REIT’s current focus on a single asset class. CMT and CCT announce proposed merger to form CapitaLand Integrated Commercial Trust, 3rd largest REIT in APAC . With a more balanced exposure across retail, office and integrated developments; reduced asset concentration risk; and a well-diversified tenant base, the merged entity can offer greater stability through market cycles.

CCT unitholders also have a lot to digest, and they will need to assess if they are comfortable that the deal will be dilutive to them from a book value perspective.Your daily good stuff - AsiaOne stories delivered straight to your inboxAsiaOne Online Pte Ltd. Company registration NO.201815023K With an enlarged balance sheet and a higher debt headroom, we will have greater financial flexibility to power our organic and inorganic growth through more proactive asset enhancements and larger investments. Support us and give our facebook page a 'like' or 'share' if you like the articles here! DETAILS OF THE MERGER. The new entity, CapitaLand Integrated Commercial Trust (CICT) will be a proxy for Singapore commercial real estate, investing in retail, office or integrated development assets, with overseas developed market exposure capped at 20%. CapitaLand Commercial Trust(SGX: C61U), or CCT, and CapitaLand Mall Trust (SGX: C38U), or CMT, announced that they would merge by way of a trust scheme arrangement. On a pro forma basis, FY 2019 distribution per unit would have increased by 1.6%. While the merged entity will have a higher gearing, I think the trade-off is still advantageous.On top of that, the enlarged REIT will also benefit from economies of scale. It intends to focus on developed markets, such as Europe and Japan. The greater financial flexibility will strengthen its position to take on large-scale integrated developments that the standalone entities would otherwise not be able to. That works out to around $2.131 for each CCT unit.