Hongkong Land Holdings Limited announced that it has acquired a 10,8% interest in Suntec Real Estate Investment Trust for a total cash consideration of S$541m (US$422m).

Suntec REIT's portfolio of strategically located office and retail assets across Singapore's central business district includes a 33 1/3 interest in both Marina Bay Financial Centre (Towers 1 & 2) and One Raffles Quay - the same assets in which the Singapore Central Private Real Estate Fund ("SCPREF"), majority owned and managed by Hongkong Land, holds a 33 1/3 interest.

The acquisition enables Hongkong Land to deploy recently recycled capital into prime, income-producing commercial assets predominantly located in Singapore. This aligns with the Company's positive outlook and conviction in Singapore's prime commercial property market. Additionally, the yield derived from the Company's stake in Suntec REIT will contribute to the diversification of Hongkong Land's earnings profile.

The recent announcement by Acrophyte Asset Management Pte Ltd, a wholly owned Tang Organization Pte. Ltd. ("Tang Organization") subsidiary, of its acquisition of the Suntec REIT Manager creates an alignment of interest by way of the Tang Organization owning an approximately 36% interest in Suntec REIT units whilst also owning 100% of the Suntec REIT Manager.

(source)