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ESR-REIT, Viva Industrial Trust merger takes effect

The planned merger between ESR-REIT and Viva Industrial Trust for the creation of what is expected to be the fourth-largest Singapore-listed industrial real estate investment trust took effect Oct. 15.

Viva Industrial, which comprises Viva Industrial Real Estate Investment Trust and Viva Industrial Business Trust, is expected to be delisted from the Singapore stock exchange Oct. 22 in line with the scheme's implementation.

ESR's merger with Viva Industrial created a larger REIT that owns an estimated S$3.0 billion portfolio of 56 properties spanning a total gross floor area of 13.6 million square feet. It followed the receipt of respective approvals from the merging parties' shareholders on Aug. 31, from the city-state's High Court on Sept. 13. and from Jurong Town Corp., according to a news release.

Viva Industrial said its security holders are expected to receive payment for the scheme no later than Oct. 24.

In addition, RBC Investor Services Trust Singapore Ltd., as trustee of ESR, established a S$700 million unsecured loan facility with a syndicate of lenders including United Overseas Bank Ltd., RHB Bank Bhd., The Hongkong and Shanghai Banking Corp. and the Singapore branch of the Malaysian Banking Bhd. to cover, among other things, a portion of the cash consideration for the scheme and other expenses incurred related to the merger.

As of Oct. 12, US$1 was equivalent to S$1.38.