Suntec Real Estate Investment Trust (REIT) has agreed to spend S$1.4958 billion, or approximately $2,568 psf of NLA to acquire a one-third stake in some properties in Phase One of Marina Bay Financial Centre (MBFC) from companies Hutchison Whampoa and Cheung Kong Holdings, which are both owned by HK billionaire Li Ka-shing.
The deal comes after K-Reit Asia announced that it would purchase a stake in MBFC Phase One from Keppel Land, its parent company.
Suntec Reit will be holding an extraordinary general meeting to obtain unitholders’ approval for the acquisition. If it’s successful, the trust will be acquiring a stake in two Grade A office towers, the Marina Bay Link Mall and 695 carpark lots.
The approximately $1.5 billion payment for the Cheung Kong/Hutchison Whampoa stake includes an income support of about $113.9 million.
The trust said it is still reviewing several financial options to fund the acquisition, including the issuance of units and debt securities. It also said the acquisition will further “improve the earnings and distributions for unit holders.”
Yeo See Kiat, chief executive of Suntec Reit’s manager, said the purchase will increase the trust’s presence in the Marina Bay area and diversify its income stream. “The high quality attributes of the MBFC property would offer a good long-term growth potential,” he said.
Several market watchers have already been expecting the deal after K-Reit announced its plan to acquire Keppel Land’s stake worth $1.4268 billion or around $2,450 psf, which included a $29 million rental support.