The $7 bln merger of two real estate investment trusts run by Mapletree Investments, owned by Singapore's sovereign investment fund, has ruffled local shareholders as well as activists. It leaves investors with less choice, says JennHughes13
Mapletree Commercial Trust and Mapletree North Asia Commercial Trust announced plans on Dec. 31 to merge. Singapore-focused MCT offered a deal worth $1.1949, mostly in its shares, for its North Asia-focused sister trust, whose single biggest asset is the Festival Walk shopping mall in Hong Kong. Mapletree Investments, which owns stakes in both entities, is fully owned by Temasek, Singapore’s state-owned investing arm.
Prices for both real estate investment trusts have slid since the deal was announced, halving the premium per MNACT unit to 3%. Activist Quarz Capital has publicly criticised the value for MNACT shareholders while the influential Securities Investors Association has also questioned the rationale for the combination.A water feature is seen in an empty Merlion Park, as tourism braces for a steep decline following the outbreak of coronavirus disease along Marina Bay in Singapore, March 26, 2020.