Suntec Reit up 7.1% following news of strategic review; S$560 million of units traded

[SINGAPORE] Suntec Real Estate Investment Trust (Reit) rose 7.1 per cent or S$0.10 to S$1.50 in morning trading on Thursday (Mar 19), two days after it announced that Tang Organization, its new sponsor, plans to “undertake a comprehensive strategic review” of the trust’s portfolio. 

As at 10.21 am, over 328 million units worth over half a billion dollars had changed hands, pushing the counter to the top of the actives list. The number of units traded is more than 10 per cent of the Reit’s total units in issue, leading some dealers to believe it includes a married deal.

On Tuesday, Tang Organization said it’s undertaking a review to “strengthen portfolio performance and enhance capital efficiency”; it will also explore “disciplined approaches to asset optimisation and recycling”, Tang Organization said. The initiatives could “support higher distributions” in the coming years, while balancing Suntec Reit’s capital management needs and long-term sustainability.

Tang Organization – controlled by Gordon Tang and his wife Celine – is the parent company of Acrophyte Asset Management, which recently completed the takeover of Suntec’s manager ESR Trust Management (Suntec), which this week announced that David Alasdair William Matheson has retired from his role as chairman, in alignment with the change in ownership of the Reit manager.

The acquisition followed an earlier unsuccessful bid by Gordon and Celine Tang to acquire Suntec Reit in 2024. They had launched a mandatory conditional cash offer of S$1.16 per unit for the trust, but failed to meet the 50 per cent threshold. 

In addition to controlling Suntec City in Singapore via the Reit, the Tangs also have interests in One Raffles Quay, Marina Bay Financial Centres Towers 1 and 2, and the Marina Bay Link Mall.