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Nikkei Markets

Two CapitaLand REITs to merge as quest for scale quickens

Union to create Asia's largest hospitality trust

CapitaLand sold over 1,800 residential units in China during the three months ended June, more than double its sales in the same period a year ago.   © Reuters

SINGAPORE (Nikkei Markets) - Two real-estate investment trusts controlled by property giant CapitaLand will combine to form Asia's largest hospitality trust, in yet another sign of the consolidation sweeping through the city-state's smaller REITs as they seek scale.

Ascott Residence Trust and Ascendas Hospitality Trust will have some 7.6 billion Singapore dollars ($5.6 billion) in combined assets, the two said in a joint statement. The pooling increases the likelihood that the new entity will be included in the widely followed FTSE EPRA Nareit Developed Index, which will help broaden the investor base and increase trading liquidity.

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