SINGAPORE (Jan 29): ESR-REIT has announced details of a plans for its merger with Viva Industrial Trust (VIT).

The proposed merger will be effected through the acquisition by ESR-REIT of all the VIT stapled securities held by its stapled securityholders.

The consideration will be satisfied by the allotment and issue of new ESR-REIT units to VIT stapled securityholders.

The enlarged ESR-REIT is expected to become the fourth largest industrial S-REIT, with its overall asset size increasing to $3.0 billion.

"The proposed merger is part of ESR-REIT's strategy to create a diversified, sizeable and liquid Pan-Asia developer-backed Singapore-based industrial property REIT with greater financial strength, larger market capitalisation and higher liquidity," says ESR-REIT in its announcement.

Currently, Chinese property tycoon Tong Jinquan is the biggest investor in both trusts, data compiled by Bloomberg show.

Units in ESR REIT and VIT last traded at 57 cents and 95 cents respectively before the trading halt for the announcement.

This story, written by PC Lee for The Edge Singapore, first appeared on Jan 29.