SINGAPORE (THE BUSINESS TIMES) - Suntec Real Estate Investment Trust (Suntec Reit) has sold its 30 per cent interest in 9 Penang Road, formerly known as Park Mall, to Haiyi Holdings.

The buyer will pay about S$89.9 million for the 15 million ordinary shares and 678 redeemable preference shares that Suntec Reit held in the joint venture (JV) company, which indirectly owns the property.

Net proceeds are expected to be around S$88.2 million, Suntec Reit's manager said in a filing on Wednesday (June 16) evening.

These will provide the financial flexibility to pare down bank borrowings to improve the Reit's average leverage ratio, or they may be redeployed to acquire accretive, higher-yield assets, it said.

Haiyi Holdings, which redeveloped the site together with Suntec Reit and SingHaiyi Group, already held a 35 per cent stake in the JV before buying out Suntec Reit's interest.