Suntec – BT

CityDev, Suntec Reit settle $788m dispute

CITY Developments (CityDev) and Suntec Reit have settled their dispute over an aborted $788 million property deal.

In 2005, CityDev rejected Suntec Reit’s move to terminate the deal under which Suntec Reit was to have bought 11 properties from CityDev for $788 million. Suntec Reit called off the deal on grounds that it could not obtain regulatory approvals in time to convene an extraordinary general meeting of unit-holders.

Yesterday, Suntec Reit trustee HSBC Institutional Trust Services (HSBCIT), Suntec Reit manager ARA Trust Management and CityDev and its subsidiaries entered into a settlement agreement under which HSBCIT will get a refund of $5 million, being the total of various deposits it made. CityDev will be paid all the interest earned on each deposit. The payments are expected to be made to HSBCIT and CityDev by tomorrow.

The parties said that the terms of the settlement agreement constitute full and final settlement of the matter without admission of any liability by the parties.