The 12-storey property has an NLA of 282,000 sqft and a committed occupancy of 91.6%.

The property at 55 Currie Street has an approximate net lettable area (NLA) of 282,000 sqft and had undergone refurbishment, which includes major mechanical and electrical plant and equipment upgrades to its lift system, chillers and building management systems in 2018. Solar panels were also installed, whilst end-of-trip facilities were installed together with the upgrading of the central atrium, lift lobbies and toilets.

The property has a committed occupancy of 91.6%, with the Commonwealth Government, South Australian Government, Allianz and Data Action as the key tenants. In addition, the vendor will provide a 27-month rent guarantee for the vacant spaces. The property has a weighted average lease expiry (WALE) of 4.4 years.

According to Suntec REIT, the acquisition of 55 Currie Street will further enhance the stability of the REIT’s income. “Together with the completion of the existing projects under development and the recent acquisition of 21 Harris Street in Pyrmont, Sydney, approximately 17% of Suntec REIT’s assets under management (AUM) and approximately 23% of the income contribution will be from Australia,” the firm highlighted.

An initial net property income (NPI) yield of approximately 8%, including rent guarantee, is expected to provide immediate accretion upon completion of the acquisition. It is also forecasted to provide income growth through rent escalation between 3.5 and 3.75%.

The acquisition will be funded by proceeds from the firm’s private placement in April 2019.

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The bulk of the proceeds will go towards financing potential acquisitions of properties in Australia, ARA Trust Management (Suntec) Limited said on Thursday before the market opened.

On Wednesday night, the Reit’s manager had proposed to issue 84.7 million new units to raise about S$150 million, with the option to upsize it by up to an additional S$50 million.

Of the S$200 million gross proceeds, some 83.8 per cent or S$167.5 million will be allocated for the potential acquisitions.

The acquisitions will extend Suntec Reit’s footprint in Australia, and the properties are expected to be acquired at property yields which will enhance distributable income to unitholders, the manager said in the exchange filing on Wednesday night.

About S$28.4 million of the proceeds will be used to refinance existing debt and/or fund asset enhancement initiatives and capital expenditure, while S$4.1 million will go into paying underwriting, selling and management fees as well as other estimated fees and expenses incurred from the placement.

Any balance of the gross proceeds will go into general corporate and working capital purposes.

Net proceeds amount to about S$195.6 million after deducting the underwriting, selling and management fee and other estimated fees and expenses.

The S$1.80 per unit issue price represents a discount of 4.2 per cent to the volume-weighted average price of S$1.879 per unit in Suntec Reit for trades done on the full market day on April 24.

Citigroup Global Markets Singapore and DBS Bank are the joint lead managers and underwriters for the placement.

Suntec Reit on Wednesday morning posted a first-quarter distribution per unit (DPU) of 2.434 Singapore cents for the three months to March 31.

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Formerly known as Park Mall, the property is undergoing redevelopment which is on track to be completed in the fourth quarter this year, the mainboard-listed developer said on Wednesday.

UBS Singapore plans to move to the 10-storey Grade A office building in the second half of 2020. It will take up 381,000 square feet of net lettable area, spanning eight levels across two towers.

Besides UBS Singapore, the new building has also garnered “strong interest” from potential retail tenants including food and beverage outlets, and ancillary services, SingHaiyi added.

Haiyi Holdings is a wholly owned entity of the group’s major shareholders, SingHaiyi’s group managing director Celine Tang, and her husband, Gordon Tang.

SingHaiyi Group and Haiyi Holdings each hold a 35 per cent stake in the JV, while Suntec Reit owns the remaining 30 per cent.

The new building is located near Singapore’s prime shopping belt Orchard Road and Dhoby Ghaut MRT station. It also has 15,000 sq ft of retail space, and an extended 99 years leasehold which will expire on Dec 7, 2115.

UBS Singapore’s country head, August Hatecke, noted that the move will allow UBS Singapore to bring its employees working at One Raffles Quay and Suntec City under one roof to enhance collaboration, as well as offer new capacity for future growth in the Asia-Pacific region.

UBS has close to 4,000 employees in Singapore across its businesses, and the new premises will also be home to UBS University, which provides training and development programmes for its staff across the region.

Added Mrs Tang: “9 Penang Road marks SingHaiyi’s first foray into commercial property redevelopment, and a strategic springboard to expand our brand and track record in commercial and retail property development.”

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Gross revenue rose 3.7 per cent year-on-year to S$90.5 million, while net property income rose 2.2 per cent to S$60.7 million, both due mainly to higher contribution from Suntec Singapore and Suntec City Mall offsetting a lower contribution from Suntec City office.

Distribution to unitholders for the quarter was flat at S$66 million.

Overall committed occupancy as at June 30 rose to 99.8 per cent for the Singapore office portfolio and improved to 98.6 per cent for the Singapore retail portfolio.

For Suntec Reit’s Australian properties, the committed occupancy for 177 Pacific Highway stayed at 100 per cent, while Southgate Complex saw committed occupanices of 92.7 per cent for its office towers and 90.4 per cent for its retail podium. Suntec Reit completed the acquisition of an additional 25 per cent interest in the Southgate Complex integrated development on May 31, raising its total interest to 50 per cent.

For the first half of fiscal 2018, the Reit’s DPU of 4.907 Singapore cents was a marginal 0.2 per cent lower year-on-year, due mainly to an enlarged units base. Distributable income for the first half was 2.3 per cent higher at S$130.8 million.

Suntec Reit’s gross revenue for first half 2018 rose 3.1 per cent year-on-year to S$181.2 million, while net property income rose 2 per cent to S$123.7 million.

The Reit’s debt-to-asset ratio was 36.5 per cent as at June 30, while its all-in financing cost was 2.74 per cent per annum for the second quarter.

Unitholders will receive their DPU for second quarter 2018 on Aug 29.

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Distributable income stood at S$66.1 million, 4.9 per cent lowerthan a year ago. Net property income generated was S$60.7 million, 2.9 per cent lower on year due to the divestment of Park Mall and lower income from Suntec City and Suntec Singapore. Gross revenue of S$88.9 million was 1.6 per cent higher than a year ago. This was mainly due to the contribution of 177 Pacific Highway.

For the full year 2016, distributable income was S$253.7 million, 0.7 per cent higher than that generated in 2015. Full year DPU stood at 10.003 cents, which is in-line with 2015 DPU of 10.002 cents.

At the end of 2016, its Singapore office portfolio achieved an overall committed occupancy of 99.3 per cent. The committed occupancies for Suntec City Office, One Raffles Quay (ORQ) and Marina Bay Financial Centre (MBFC) properties were at 98.9 per cent, 100 per cent and 99.8 per cent, respectively.

In Australia, the committed occupancies for 177 Pacific Highway and Southgate Complex (Office) were 100 per cent and 86.1 per cent, respectively.

As for its retail portfolio, the overall committed occupancy in Singapore was 97.7 per cent. The committed occupancy for Suntec City Mall improved to 97.9 per cent, while the committed occupancies for ORQ and Marina Bay Link Mall were 100 per cent and 97.4 per cent, respectively.

In Australia, the committed occupancy for Southgate Complex (Retail) was 89.0 per cent.

Development works for the new Grade A commercial building at 9 Penang Road has started in December 2016. The ten-storey building – with net lettable area of 352,000 sq ft of office space across eight floors and 15,000 sq ft of retail space on one floor – is scheduled to be completed by end 2019. The land lease where the former Park Mall was situated has also been extended to 99 years.

The development is estimated to cost about S$800 million, and is undertaken through a joint venture with Singhaiyi Group, Haiyi Holdings and Suntec Reit, with an interest of 35 per cent, 35 per cent and 30 per cent, respectively.

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The private placement of just over 218 million new Suntec units was priced near the top of the indicative range of S$1.575 to S$1.615.

The placement price, however, represented a discount of about 4.7 per cent to the REIT’s volume weighted average price of S$1.6839 on Tuesday.

Suntec closed down nearly 2.7 per cent at S$1.645 on Wednesday.

Suntec owns most of Suntec City and Park Mall. Its other assets include large stakes in the Marina Bay Financial Centre.

DBS, Standard Chartered and HSBC were joint lead managers and underwriters for the placement.

Source : Today – 19 Mar 2014

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In a statement, ARA Trust Management (Suntec) Limited, manager of Suntec REIT, said its income available for distribution fell 5.3 per cent on-year to S$52.39 million in the fourth quarter.

It added that fourth-quarter gross revenue and net property income also came in lower than the previous year.

ARA Trust Management attributes the decline to the closure of Suntec Singapore, and Suntec City Mall (Phase 1) for the asset enhancement works and the divestment of CHIJMES.

For the fourth quarter of 2012, Suntec REIT recorded a gross revenue of S$55 million, down 31.3 per cent from the previous year.

Net property income for the quarter was S$30.55 million, a fall of 41.3 per cent on-year.

For the full year, the income available for distribution for Suntec REIT was down 3.5 per cent to S$213 million, compared to FY2011.

Meanwhile, its distribution per unit for FY2012 was 9.490 cents, a 4.5 per cent drop from the previous year.

Looking ahead, ARA Trust Management said the works on Phase 1 of the asset enhancement initiative (AEI) for Suntec City is on track and due to be completed by the second quarter of 2013.

Yeo See Kiat, chief executive officer of ARA Trust Management (Suntec) Limited, said: “To date, we have achieved a pre-commitment of about 83 per cent in respect of Suntec REIT’s Phase 1 NLA (net lettable area).

“We are also about to embark on Phase 2 of the AEI in March 2013 and we are pleased to report that 37 per cent of Phase 2 NLA has been pre-committed even before we commence works.

“Based on our leasing progress to date, our projected rental enhancement and return on investment of 10.1 per cent are on track.”

Mr Yeo also shared that Golden Village will be setting up a 60,000 square feet, 11-screen multiplex in Phase 2 of the new Suntec City, which will include a three-screen Gold Class theatre.

Other brands that have signed up to lease space under Phase 1 of the new Suntec City include Lush, Smile Inc, Smoothie King, Popeyes, HABA and Yankee Candle.

Source : Channel NewsAsia – 22 Jan 2013

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The Reit’s DPU slipped to 2.361 Singapore cents per unit for the April-June period from 2.532 cents in the same period last year.

Suntec said the decline is due mainly to the lower retail revenue from Suntec City Mall and the loss in revenue because of the trust’s divestment of Chijmes in January this year.

Gross revenue for the quarter has risen by 15.8 per cent to nearly S$71 million.

However, distributable income has fallen by 5.7 per cent to S$53 million.

“Despite the challenges in the office market, the (trust) manager is cautiously optimistic on the performance of its office portfolio,” the trust said in the statement.

Suntec City Office Towers has achieved a 100 per cent committed occupancy while the trust’s office portfolio committed occupancy has strengthened to 99.9 per cent.

Source : Channel NewsAsia – 19 Jul 2012

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This is 2.7 per cent higher from its DPU of 2.39 cents declared a year ago.

The trust said its annualised distribution yield stood at 7.8 per cent, compared to 7.6 per cent in the same period last year.

Suntec REIT’s gross revenue rose 20.1 per cent to S$73.3 million year-on-year.

In its filing to the Singapore Exchange, the REIT manager said this is mainly due to the consolidation of revenue from Suntec Singapore.

Meanwhile, net property income rose five per cent to S$49 million from the previous year.

Although the office market remained subdued in the first quarter of 2012, the trust said its overall committed occupancy for the office portfolio enjoyed a strong occupancy of 99.4 per cent as at 31 March 2012.

Committed occupancy for the retail portfolio stood at 97.3 per cent as at 31 March 2012.

The trust is starting asset enhancement works at Suntec City, which is expected to complete by the second quarter of 2013.

Several established brands have signed up for retail space in the newly refurbished Suntec City Mall, including Swedish clothing giant H&M, which will take up 20,000 square feet.

Another major international fashion retailer has also committed approximately 22,000 sq ft with the mall.

In the coming year, the trust said it will focus on the smooth execution of its refurbishment works for Suntec City Mall as well as maintain a high occupancy level for the rest of the mall.

Mr Yeo See Kiat, chief executive officer, ARA Trust Management (Suntec), said: “For our office portfolio, with the strong occupancy level and renewal achieved to date, barring any unforeseen circumstances, we are confident that our office portfolio would outperform that of the preceding year.”

Source : Channel NewsAsia – 24 Apr 2012

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The AEI is scheduled to start in mid-2012, and will comprise a S$230 million capital expenditure in remaking Suntec City Mall and a further S$180 million on Suntec Singapore International Convention and Exhibition Centre (Suntec Singapore).

Suntec REIT holds an effective interest of 60.8 per cent in Suntec City. On completion in mid-2015, the development will offer almost 1 million sq ft of retail lettable space.

In a statement released on Monday, the REIT manager said Suntec City Mall’s net property income is expected to increase by 33 per cent or S$23 million. This would represent a 10.1 per cent return on investment for unit holders and an 84 per cent increase in capital value over capital expenditure.

Mr Yeo See Kiat, Chief Executive Officer of ARA Trust Management (Suntec) Ltd, which manages Suntec REIT, said: “During the execution of the AEI works, we would use part of the sales proceeds from Chijmes to mitigate the temporary dip in DPU.”

Last week, Suntec REIT announced that it entered into a property sale agreement with PRE 8 Investments Pte Ltd for the sale of Chijmes at a price of S$177 million or S$2,218 psf on net lettable area.

Source : Channel NewsAsia – 31 Oct 2011

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