In a strategic move aimed at generating value and streamlining operations, Vastned Retail and Vastned Belgium have announced their intention to merge. The combined entity, to be named Vastned, will result in a unified listed platform under Belgium’s REIT regime, promising operational cost synergies of approximately EUR 2.0-2.5 million annually. The merger is expected to enhance portfolio diversification, optimize debt financing, and offer increased free float and liquidity, thus making it more attractive for equity analyst coverage. Upon effective merger on January 1, 2025, following shareholder approval, Vastned Retail shareholders will exchange their shares at a ratio of 0.839 Vastned Belgium shares for every Vastned Retail share. Additionally, to mitigate immediate impacts on cash dividends, Vastned Belgium will declare an additional dividend of EUR 1.00 per share for its pre-merger shareholders and both entities will issue interim dividends in December 2024. The boards of both Vastned Retail and Vastned Belgium have unanimously recommended the merger, receiving strong support from major shareholders, including entities controlled by prominent investors.

Real Estate Investment Trusts (REITs), Corporate Finance,Belgium, Netherlands