Singaporean real estate company CapitaLand plans to merge peers Ascott Residence Trust (Ascott Reit) and Ascendas Hospitality Trust (A-H Trust) and form the largest hospitality trust in the Asia-Pacific.
Under the terms to the transaction, Ascott Reit will buy all A-H Trust units for $1.0868 per unit, comprising $0.0543 in cash and 0.7942 Ascott Reit-BT units issued at a price of $1.30.
The combined entity, to be called Ascott Reit-BT, will have a total asset value of $7.6 billion and 88 properties with more than 16,000 units in 39 cities and 15 countries across the Asia-Pacific, Europe and the U.S.
The proposed deal is subject to the approval of Ascott Reit unitholders and A-H Trust stapled unitholders at their respective extraordinary general meetings and scheme meetings expected to be held by this year.