Isetan S'pore, SGReit say no deal yet on stake in Wisma Atria

Isetan Singapore and YTL Starhill Global Reit (SGReit) Management have not yet inked a deal on the potential acquisition of Isetan's strata area at shopping mall Wisma Atria, both companies clarified yesterday.

A non-binding expression of interest (EOI) from SGReit's manager has been sent to Isetan Singapore, the companies confirmed yesterday after trading hours.

But no definitive decision has been made, they added.

The Japanese department store operator said it is currently reviewing the EOI and evaluating whether the proposal is in line with its long-term strategy.

Isetan's shares had shot up by almost 10 per cent yesterday on the back of a news report that the manager of SGReit had made an offer to acquire Isetan Singapore's share of Wisma Atria.

It prompted the Japanese firm to request a trading halt. Its shares closed at $5.24, up 9.6 per cent - surpassing its 52-week high of $4.80.

The Business Times had earlier reported that SGReit's manager issued a letter of intent to Isetan more than a month ago to open talks on acquiring the Japanese firm's share in the shopping mall along Orchard Road.

SGReit owns about 74 per cent of the Wisma Atria property's total share value of strata lots, with the remaining owned by Isetan Singapore.

A version of this article appeared in the print edition of The Straits Times on September 11, 2019, with the headline 'Isetan S'pore, SGReit say no deal yet on stake in Wisma Atria'. Print Edition | Subscribe