Suntec – BT

Suntec Reit’s income up 23% in Q3

SUNTEC Real Estate Investment Trust (Suntec Reit) yesterday announced a distribution income of $30 million for its third financial quarter ended June, 22.9 per cent higher than a year ago. Distribution per unit came to 2.1 cents for Q3 FY2007, up 11.9 per cent from the previous corresponding period, said ARA Trust Management (Suntec) Ltd (ARA Suntec), the manager of the Reit.

Yeo See Kiat, chief executive officer of ARA Suntec, said: ‘I’m pleased to report that Suntec Reit has achieved a very good growth for the office portfolio in this quarter. ‘In addition, Suntec City Mall has also reached a new high in its committed average passing rent, to $10.23 psf per month as at June30, 2007.’

Suntec Reit said its office portfolio continues to enjoy strong rental growth. Suntec office leases achieved strong renewal and replacement growth rates for the quarter, with leases secured at rates of $9-10.50 psf per month. Park Mall office leases also achieved strong renewal and replacement growth in Q307. The committed office occupancy at Suntec City and Park Mall increased to 99.4 per cent and 98.5 per cent respectively as at June30, 2007.

Rentals were boosted by asset enhancement projects. Suntec City Mall’s new Fashion zone at Galleria achieved an average rent of $24 psf per month compared with $12.27 psf per month previously, with a committed occupancy of 73 per cent to date. This is expected to strengthen further in the next quarter, the Reit said.

Suntec Reit also announced yesterday the proposed acquisition of a one-third stake in One Raffles Quay for $941.5 million. It is also acquiring a strip of state land of about 1,261 square metres along Penang Road, at a land premium of $14.5 million for amalgamation with Park Mall to create an additional floor area of 5,825 square metres (62,704 square feet). The total acquisition cost of the land would be $15.9 million.