May 18, 2018 / 4:11 AM / 4 days ago

Warburg Pincus-backed ESR-REIT agrees to merge with Viva Industrial

SINGAPORE, May 18 (Reuters) - ESR-REIT and rival Viva Industrial Trust have agreed to merge, in a proposed deal that would create the fourth-largest industrial real estate investment trust in Singapore, both companies said on Friday.

Under the deal, Viva securityholders will receive S$0.96 per stapled security, which will be paid 10 percent in cash and 90 percent through the issue of new ESR-REIT units.

Talks have been ongoing for months as ESR-REIT, which is backed by Asian logistics developer e-Shang Redwood (ESR) - a venture of private equity firm Warburg Pincus and global investors, had said in January its manager submitted a proposal to merge it with Viva.

Trading in units of both ESR-REIT, which has a market capitalisation of about S$830 million ($618 million), and Viva, which is valued at about S$865 million, were halted ahead of the news.

The property portfolio of both companies comprises general industrial, logistics, warehouses and business parks.

$1 = 1.3429 Singapore dollars Reporting by Aradhana Aravindan, Editing by Sherry Jacob-Phillips

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