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Straits Trading Co buys Suntec Reit units for $60.2 million

Published on May 4, 2014 9:28 PM
 
The exterior of Straits Trading Company Limited, a business in Myanmar owned by Mr Sheik Babu Nooruddin, Managing Director of Al Noor Group of Companies. -- FILE PHOTO: AL NOOR INTERNATIONAL

SINGAPORE - The Straits Trading Co, which is actively seeking new investment opportunities in real estate, has acquired a small stake in Suntec Real Estate Investment Trust (Suntec Reit).

The real estate, hospitality and mining group said its subsidiary Straits Real Estate bought 35.1 million Suntec Reit units in a series of transactions for $60.2 million or about $1.72 each. They represent 1.4 per cent of all outstanding Suntec Reit units.

Straits Trading said in a statement that the purchase was in line with its stated intention of deploying capital into suitable real estate-related opportunities.

"The board is of the view that the market acquisitions represent an investment in a liquid Singapore-focused Reit at an attractive entry price," said the firm, noting that the average purchase price worked out to a discount of 17.3 per cent to Suntec Reit's book value as at March 31.

 
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