Home Real Estate Temasek bows to activist shareholders on real estate fund plans

Temasek bows to activist shareholders on real estate fund plans

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The property arm of Singapore’s Temasek has fended off a revolt over its plan to form a S$10.5bn (US$7.7bn) real estate fund, offering an extra $S2.2bn in cash to appease shareholders in a rare concession by the state investor.

The proposed merger between Mapletree Commercial Trust and Mapletree North Asia Commercial Trust, both run by Temasek’s property arm Mapletree Investments, was first announced in December. The deal was expected to create the seventh largest real estate trust in Asia.

But activist fund Quarz Capital publicly criticised MNACT’s management in February, claiming the deal “significantly” undervalued the trust’s property portfolio. It questioned whether MNACT’s managers would have recommended the same bid had it come from a company it was not directly related to.

Following the shareholder pressure, Mapletree Investments this week surprised investors with a new bid to merge the two listed trusts linked to Temasek, a…

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