Will there be a merger between CapitaLand's retail REITs?

Its retail REITs could form an Asia Pacific REIT.

Industry rumours that there could be a consolidation amongst CapitaLand's retail real estate investment trusts (REITs) have been played down by the management itself, DBS Group Research said.

Suggestions of a merger amongst CapitaLand Commercial Trust, CapitaLand Retail China Trust, and CapitaLand Malaysia Mall Trust have surfaced, noting that these could possibly form an Asia Pacific REIT.

"Whilst such a scenario is under consideration given the intention might be to build scale and growth, we understand that management prefer to have their REITs split into “developed market” and “emerging market” exposures given different market dynamics and risks," lead analyst Derek Tan said.