Suntec – SGX

SUNTEC REIT TO ACQUIRE ONE-THIRD STAKE IN ONE RAFFLES QUAY

ASSETS UNDER MANAGEMENT INCREASES TO S$4.81 BILLION, OFFICE PORTFOLIO TO 1.82 MILLION SQUARE FEET

Singapore, 30 July 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”), Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), is pleased to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT, has entered into a conditional share purchase agreement with Cavell Limited (the “Vendor”) for the acquisition by Suntec REIT of a onethird interest in One Raffles Quay through the acquisition of the entire issued share capital of Comina Investment Limited (“Comina”). Comina is a special purpose holding company holding one-third of the issued share capital of One Raffles Quay Pte Ltd (“ORQPL”), the developer and owner of the Property.

The proposed one-third stake in One Raffles Quay is at a purchase value of S$941.5 million. The acquisition is expected to be yield accretive for Unitholders, taking into account the rental top up payments of S$103.48 million (inclusive of GST) over 54 months to be provided by the Vendor. It will also provide further geographical and income diversification for Suntec REIT. The Manager is currently reviewing various financing options for the Acquisition, including without limitation the issuance of units, loans, convertible bonds or other debt securities, or any combination of the aforesaid.

The acquisition is targeted for completion by the first quarter of FY2008. Upon completion, Suntec REIT’s total assets under management would increase to S$4.81 billion.

Mr. Yeo See Kiat, Chief Executive Officer of ARA Suntec, said, “This is a rare opportunity to own a key development such as One Raffles Quay, which offers excellent growth potential. This is in line with our strategy to focus on the exciting Marina Bay growth corridor in acquiring quality assets that would provide stable income streams and significantly enhance the income diversification of the REIT.”

“Given the increased portfolio exposure to the rising office market, we are pleased that this acquisition would allow us to deliver more value to our unitholders.”

Iconic development in the heart of Singapore’s upcoming financial hub
One Raffles Quay is a prime landmark office development situated within the new Business Financial Centre in the Marina Bay precinct with direct accessibility to Raffles Place MRT, a key interchange station in the heart of Singapore’s Central Business District.

Well-positioned to capitalise on the future growth of the area, the property offers a strategic fit in Suntec REIT’s existing portfolio of assets and allows greater exposure to Singapore’s rising office market, underpinned by strong demand for quality office space. Upon completion, the enlarged portfolio of 1.82 million square feet of office space will include reputable tenants such as ABN Amro Asia Pacific Pte Ltd, Barclays PLC, Credit Suisse (Singapore) Limited, Deutsche Bank AG, Ernst & Young Services Pte Ltd and other major financial institutions in addition to Suntec REIT’s existing strong tenant base.

Source : SGX