CapitaLand Mall Trust and CapitaLand Commercial Trust Proposed Merger

Following the proposed merger between Frasers Logistics and Industrial Trust and Frasers Commercial Trust, another REIT announced their merger. On 22nd January 2020, CapitaLand Mall Trust and CapitaLand Commercial Trust announced their proposed merger.

CapitaMall Trust currently has 15 properties in its portfolio while Capita Commercial Trust has 10 properties. With the proposed merger, the merged REIT will have a total of 24 properties. (Capita Commercial Trust has 60.0% of Raffles City while CapitaMall Trust owns the other 40%)

With the merger, the properties are valued at S$22.9 billion.

With the proposed merger, CapitaLand Commercial Trust holders will receive

  • 0.72 CapitaMall Trust Units per CapitaLand Commercial Trust unit
  • S$0.2590 in cash per CapitaLand Commercial Trust unit

Pro Forma DPU Accretion

CapitaMall Trust currently makes up 9% of my stock portfolio. I currently do not hold any CapitaLand Commercial Trust units thus I will not receive any new CapitaMall Trust units or receive any cash distribution.

However, as a CapitaMall Trust unit holder, I will be keen to know what is the increase in Distribution Per Unit (DPU) after the merger.

According to the presentation slides, Pro forma DPU accretion is expected to increase 1.6% from 11.97 cents to 12.17 cents.

With every announced proposed merger, I noticed the share price has always gone up the next day. The share price of CapitaMall Trust has jumped from S$2.58 to S$2.64.

The share price of CapitaLand Commercial Trust has jumped from S$2.12 to S$2.18.

Past Merger of REITs

Here are the news on the merger of other REITs.

Which is the next REIT that will announce a merger?

My Personal Analysis of CapitaLand Commercial Trust

CapitaLand Commercial Trust catches my eye when I was researching on REITs that own car parks in their portfolio. If you didn’t know, Golden Shoe Car Park is one of the assets in CapitaLand Commercial Trust portfolio. But in general, CapitaLand Commercial Trust is similar to Keppel REIT which consists of mainly Grade A office assets.

Golden Shoe Car Park is undergoing a redevelopment which is due to complete in 1H2021. The car park will be redevelop into a commercial development in Raffles Place. Read More

Increase in Car Park Charges – Car Owners Dismay, Investors Cheer

Car Park

Recently, Housing and Development Board (HDB) and Urban Redevelopment Authority (URA) announced that public car park charges will be increased.

Below are the current rates.

Current Rates New Rates
Regular short term parking $0.50 per half hour $0.60 per half hour
RZ/DA Parking $1.00 per half hour $1.20 per half hour

With the announcement, there are also news that private car park operators and shopping malls will also be revising their parking rates to match public car park charges. The reason is because shopping malls and private car park operators are afraid cars may all flock to private car parks and malls if public car park charges increase. This is especially true for neighborhood malls such as Northpoint, Tampines Mall and Bedok Mall etc. These malls are located near to MRT stations and housing estates and there can be a possibility of cars flocking to park at these malls.

Being a car owner myself, I curse and swear at the increase in public car park charges. However, if shopping malls do increase their car park charges, it may be beneficial to me as an investor as well. Most car parks in shopping malls are owned by retail REITs themselves. Some examples are Capitaland Mall Trust which owns Bedok Mall, Tampines Mall, Junction 8, Lot One Shoppers’ Mall and Bukit Panjang Plaza. Frasers Centrepoint Trust owns Northpoint, Causeway Point, Bedok Point and Yew Tee Point.

The following REITs I found own car park assets.

Parkway Life REIT

What? A healthcare REIT owning car parks? Yes, you are right. Parkway Life REIT owns 69 car park lots belonging to Gleneagles Intan Medical Centre Kuala Lumpur. Not only that, Parkway Life REIT also owns 363 car park lots in Mount Elizabeth Hospital.


Link REIT owns the largest portfolio of car park in Hong Kong. Link REIT owns and manage approximately 76,000 car park spaces in Hong Kong. The car parks are located near retail facilities and Hong Kong public housing estates and thus they serve local residents, shoppers and tenants.

Suntec REIT

Suntec City has 3066 car park lots. MBFC has 697 car park lots. One Raffles Quay has 713 car park lots. Most car park lots in shopping malls are own by the REIT themselves.

Capitaland Commercial Trust

Golden Shoe Car Park is owned by Capitaland Commercial Trust. It has 1053 car park lots.


Although an increase in car park charges will add to the REIT’s total revenue, more research has to be done on the fundamentals of the REIT and whether the increase in car park charges will have a significant impact.