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.
