Viva Industrial Trust *Official* (SGX:T8B)

Jupiter2017

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http://www.businesstimes.com.sg/com...cked-reit-viva-industrial-said-to-plan-merger
ESR-Reit, Viva Industrial Trust said to plan merger
FRI, JAN 26, 2018 - 2:47 PM

[SINGAPORE] ESR-REIT, which is backed by Warburg Pincus's Asian logistics venture, is in talks to merge with Viva Industrial Trust to expand its portfolio of Singapore warehouses and business parks, people with knowledge of the matter said. The two Singapore-listed trusts are negotiating the exact terms of a potential combination, according to the people, who asked not to be identified because details are private. A deal could be announced as soon as the next few weeks, one of the people said.
ESR-REIT and Viva Industrial own real estate valued at a combined S$3 billion at the end of December, according to exchange filings. Chinese property tycoon Tong Jinquan is the biggest investor in both trusts, data compiled by Bloomberg show.
Morgan Stanley analysts said as far back as 2015 that consolidation among Singapore property trusts was "unavoidable and necessary" for developing sufficient scale and liquidity to compete on the global stage. Real estate deals involving Singapore companies have have more than doubled in the past 12 months to $63.3 billion, according to Bloomberg-compiled data. ESR-REIT had discussed a deal with Sabana Shari'ah Compliant Industrial REIT last year, though exclusive talks between the parties ended in November. ESR-REIT had a market capitalization of S$742 million at the close Thursday in Singapore, while Viva Industrial was valued at S$912 million.
Units of ESR-REIT and Viva Industrial were halted from trading in Singapore on Friday afternoon, pending the release of announcements. A representative for ESR-REIT declined to comment, while a representative for Viva Industrial didn't immediately respond to an email and voice mail seeking comment.
BLOOMBERG

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Jupiter2017

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http://www.businesstimes.com.sg/com...nk-kim-eng-keeps-buy-on-viva-industrial-trust
Broker's take: Maybank Kim Eng keeps 'buy' on Viva Industrial Trust
Mon, Jan 29, 2018 - 9:49 AM Vivien Shiao vshiao@sph.com.sg

MAYBANK Kim Eng Research kept its "buy" call on Viva Industrial Trust (VIT), saying that its positive rental reversions at its well-located business park properties are expected to gain momentum, even as investors await details of possible merger talks given its share suspension on Jan 26.
Warburg Pincus-backed ESR-Reit and VIT are in advanced talks for a share swap deal. VIT and ESR-Reit are the seventh and eighth-largest industrial Reits (real estate investment trusts) by market capitalisation. As at end-December 2017, both ESR-Reit and VIT own real estate valued at a combined S$3 billion.
Maybank Kim Eng said that it had anticipated a possible consolidation theme for smaller-cap industrial Reits given the wide gap in valuations to large-cap peers, as well as common substantial shareholders.
In its report, it said: "We believe the primary motivation for ESR and VIT would be scale, with potential combined AUM (assets under management) at S$3 billion placing it as the fourth-largest industrial Reit."
This could result in lower borrowing costs, and there would be a new overseas acquisition growth pipeline with E-Shang Redwood as sponsor, added Maybank Kim Eng.
VIT's latest fourth-quarter results, with revenue and NPI (net property income) up 10.8 per cent year on year and 14.3 per cent year on year respectively, came on the back of positive rental reversions at UE BizHub East and its Viva Business Park, as well as the 6 Chin Bee Ave acquisition completed in January 2017.
Maybank Kim Eng raised its target price for VIT to S$1.05, up from S$1.00 previously.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=T8B.SI
 
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