Saizen Real Estate Investment Trust signed an implementation deal with Sime Darby Property Singapore Ltd. for a reverse takeover of the REIT.
The deal involves Saizen's acquisition of 20 industrial properties in Australia for A$355.8 million, subject to certain conditions and approvals. The Sime Darby portfolio has a total land area of approximately 1 million square meters and consists of 18 assets in Queensland and two properties in the Northern Territory.
Pursuant to the agreement, Saizen will issue new units at S$0.03604 per unit. Sime Darby Property Singapore's stake in Saizen is expected to be not less than 25.0% of the REIT's enlarged total issued units, if the transaction is completed.
Saizen expects its market capitalization to be equal to or more than S$300 million after the completed property transaction, according to a filing. The REIT's board said that the acquisition would provide Saizen with a new investment strategy, along with unlocking value for the REIT and its unit holders.
As of Oct. 10, US$1 was equivalent to A$1.31 and S$1.37.