By P.R. Venkat

A consoritum of Blackstone and the founders of Soilbuild Business Space REIT have made an offer to buy the Singapore-listed trust, valuing it at 700.26 million Singapore dollars ($523.8 million), in further consolidation of the island's real-estate industry.

Soilbuild chairman Lim Chap Huat and his family and Clay Holdings 1 Ltd.--an entity established by funds managed by affiliates of Blackstone Real Estate--have offered to buy each Soildbuild REIT unit for S$0.550 in cash, a joint statement said Monday.

The founders already own a 30.28% stake in Soilbuild REIT. In October, Soilbuild REIT said that its existing shareholders were in talks with parties with regard to their stake in the company.

"We believe that this proposal by Blackstone presents the best option for minority SB Unitholders based on the offers received, representing the highest price received," Mr. Lim said.

Singapore's real-estate industry has been consolidating for several years as developers and real-estate owners seek to build up scale and size.

Earlier this year, Singapore-listed CapitaLand Mall Trust and CapitaLand Commercial Trust agreed to merge into an entity with a combined property value of S$22.9 billion.

Last year, Frasers Logistics & Industrial Trust and Frasers Commercial Trust merged to create a single entity with a combined asset base of S$5.7 billion.

The statement said that if the offer is successful, the consortium plans to delist Soilbuild REIT from the Singapore Stock Exchange.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

December 13, 2020 19:56 ET (00:56 GMT)

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