ESR-Reit, Viva Industrial Trust
ESR-Reit, which is backed by Warburg Pincus' 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 $3 billion at the end of last month, according to exchange filings.
ESR-Reit had a market capitalisation of $742 million at the close on Thursday, while Viva Industrial was valued at $912 million.
Units of ESR-Reit and Viva Industrial were halted from trading yesterday afternoon, pending the release of announcements.
Parkway Life Reit
Parkway Life Real Estate Investment Trust posted a 10.6 per cent increase in distribution per unit (DPU) for the fourth quarter, lifted by a one-off divestment gain.
DPU for the three months ended Dec 31 stood at 3.38 cents, up from 3.06 cents a year ago. This was boosted by a divestment gain from the sale of four Japan properties as announced on Dec 22, 2016. Divestment gain after tax of $5.39 million - translating to 0.89 cents - has been fully distributed to unit holders over four quarters last year. Total distributable income to unit holders from recurring operations alone rose 3.3 per cent to $19.1 million.
Roxy-Pacific Holdings has partnered Tong Eng Group's managing director Teo Tong Lim to acquire another residential site - the freehold Wilshire in District 10 - for $98.8 million.
The 39,130 sq ft site has been sold collectively to a joint venture between Roxy-Pacific subsidiary RP Ventures, which has a 40 per cent stake, and Mr Teo's private family office TE2 Development, which holds 45 per cent. The remaining 15 per cent is held by Kim Seng Holdings. The Wilshire's sale price reflects a land rate of about $1,536 per sq ft per plot ratio.
This follows a Jan 19 announcement that Roxy-Pacific and TE2 Development had acquired leasehold site Kismis View in Upper Bukit Timah for $102.75 million - the third joint venture between both groups.