Japan Retail REIT says to merge with LaSalle REIT

TOKYO Oct 29 (Reuters) - Japan Retail Fund Investment Corp (8953.T) said on Thursday it plans to merge with LaSalle Japan REIT Inc 8974.T in a deal that would create the second largest listed REIT in Japan.

Under the scheme, Japan Retail Fund (JRF) will absorb LaSalle Japan REIT by March, with one share of JRF to be swapped for 0.295 of a share of LaSalle Japan REIT (LJR).

JRF currently owns 60 commercial properties while LJR owns a total 21 buildings including 10 office buildings and 6 apartment blocks.

The new REIT would have total assets of over 700 billion yen ($7.7 billion) and is expected to become the second-largest Japanese REIT after Nippon Building Fund Inc (8951.T).

Before the announcement, JRF's shares closed down 4.1 percent at 396,000 yen, while those of LJR lost 5.9 percent to 114,100 yen.