Property tycoon Gordon Tang to acquire Suntec Reit manager
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In February, Mr Gordon Tang and his wife failed to take over Suntec Reit as their shareholding fell short of the 50 per cent threshold as at the offer closing date.
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SINGAPORE – Acrophyte Asset Management, controlled by property tycoon Gordon Tang, has issued a disclosure of interest notification to acquire ESR Trust Management (Suntec), the manager of Suntec Real Estate Investment Trust (Reit).
Acrophyte plans to enter a conditional sale and purchase agreement with subsidiaries of ESR Group to acquire ESR’s 100 per cent indirect interest in the manager, Suntec Reit’s manager said on Dec 16.
Mr Tang currently owns, directly and through his affiliates, a 35.7 per cent stake, or about one billion units, in Suntec Reit while ESR owns a 10.8 per cent stake.
“We have consistently shown our confidence in Suntec Reit, via our significant long-term unitholding,” said Mr Tang, a China-born billionaire. “Acquiring the manager is an extension of our commitment to Suntec Reit.”
He added that he looks forward to working closely with the board and management to “review existing strategies and implement further value-adding initiatives to the benefit of all unitholders”.
Mr Chong Kee Hiong, the manager’s chief executive officer, said his team remains focused on “disciplined execution to deliver long-term value for unitholders”.
He noted: “After the handover, we will work closely with Mr Tang to deliver sustainable growth through pro-active capital and portfolio management.”
In February, Mr Tang and his wife Celine Tang failed to take over Suntec Reit as their shareholding fell short of the 50 per cent threshold as at the offer closing date.
At the time, the total number of units owned, controlled or agreed to be acquired by their investment holding company Aelios, amounted to about 37.4 per cent of the total issued units.
The investment holding company said then that the offer was made solely to comply with Rule 14.1 of the Takeover Code, which stipulates that any entity controlling more than 30 per cent of a Reit must make a mandatory general offer to acquire its remaining units.
Suntec Reit holds a 66.35 per cent interest in Suntec Singapore Convention and Exhibition Centre.
It holds one-third stakes in One Raffles Quay (ORQ), as well as the Marina Bay Financial Centre Towers (MBFC) 1 and 2 and the Marina Bay Link Mall. These are held in a joint-venture arrangement with Keppel Reit and Hongkong Land.
Last week, Hongkong Land said it was injecting its interests in ORQ and the MBFC towers into a new private fund
Suntec Reit units rose 0.7 per cent, or one cent, to close at $1.40 on Dec 16, ahead of the announcement. the business times
