Recently, a loan facility amounting to $825 million was secured by Suntec REIT. With this new loan, the retail and office trust will ho longer need further refinancing up to 2011.
The said loan, which will be utilised to refinance the existing debts of the company, comprises a seven-year fixed-rate loan worth $100 million and a three-year loan worth $725 million from a group of seven banks. Suntec REIT stated yesterday that the combined all-in interest margin calculates to less than 3.75 percent.
The divisions of the portfolio of the trust in Suntec City Towers and the Suntec City Mall will be the ones to secure the loan facility. The loans made by the company were given by four foreign banks as well as by three local banks – United Overseas Bank, OCBC Bank, and DBS Bank. Chief executive of the trust’s manager, Yeo See Kiat, said the latest facility intends that the company has refinanced the $1.7b borrowings during the last two years. In 2008, Suntec REIT has also refinanced $870m of loans.
“Amid the tight liquidity in this global economic and financial crisis, this club loan of $825 million clearly demonstrates Suntec REIT’s strong credit standing”, Mr Yeo said. Suntec REIT also announced yesterday that its distributable profit for the first quarter of 2009 increased by 23 percent to $46.4 million, from $37.6 million last year. Behind this, the distribution per unit (DPU) went up by 15.9 percent to $2.918 cents, from $2.5185 cents a year ago, while net property income in Q1 also increased by 15 percent to $49.2 million, from $42.6 million last year.
For the three months ended 31 March 2008, gross office revenue rose by 32 percent to $30.2 million. At the end of March, total occupancy committed for the office portfolio remained strong at 97.4 percent, with replacement and renewal leases at Suntec City. Similarly, the retail passing rent committed at Suntec City Mall remained strong at $11.05 per sq ft pm, while leases at Chijmes and Park Mall were $10.76 per sq. ft. pm and $7.63 per sq. ft. pm.
Suntec REIT possesses office units in Suntec Towers 1, 2, and 3, the whole of Suntec Towers 4 and 5, and the Suntec City Mall. The property portfolio of Suntec REIT also contains one-third interest in One Raffles Quay, Chijmes, and Park Mall. Yesterday, the units of the trust lost three cents or 4.3 percent.