REITs – BT

Reit shares up on Macquarie deal

Shares of Singapore real estate investment trusts (Reits) rose yesterday, helped by improved sentiment after Malaysia’s YTL Corp bought a 26 per cent stake in Macquarie Prime Reit at a more-than-50-per cent premium.

‘YTL’s investment indicates there are investors who are confident in the longer-term prospects of Singapore property,’ Goldman Sachs said in a report. ‘We view this development as positive for Macquarie Prime Reit and for the Singapore Reit sector.’

CapitaCommercial Trust closed trading at 89 cents, up 1.1 per cent after an intra-day high of $1.05, while CapitaMall Trust hit a high of $1.84 before easing 1.8 per cent to $1.62. Macquarie Prime too surged 9.3 per cent before closing 1.9 per cent up at 55 cents.

YTL, a property and infrastructure conglomerate, said on Tuesday it will buy 26 per cent of Macquarie Prime and 50 per cent of the Reit’s management firm for $285 million. The price of $0.82 a unit represents a 52 per cent premium to the Reit’s last traded price and a 49 per cent discount to book value. — Reuters