Property tycoon Gordon Tang to acquire Suntec Reit’s manager

[SINGAPORE] Acrophyte Asset Management, controlled by property tycoon Gordon Tang, has signed a deal to acquire a 100 per cent interest in ESR Trust Management (Suntec) Ltd, the manager of Suntec Real Estate Investment Trust (Reit).

The manager said Acrophyte has entered a conditional sale and purchase agreement with subsidiaries of ESR Group to acquire ESR’s 100 per cent indirect interest in the manager. It said in a statement on Tuesday (Dec 16) that Tang currently owns, directly and through his affiliates, a 35.7 per cent stake, or about one billion units, in Suntec Reit, while ESR owns a 10.8 per cent stake in Suntec Reit.

“We have consistently shown our confidence in Suntec Reit, via our significant long-term unitholding,” said Tang, a China-born billionaire. “Acquiring the manager is an extension of our commitment to Suntec Reit.”

Tang and his wife Celine Tang, through their vehicle Aelios, launched a mandatory conditional offer of $1.16 per unit for Suntec REIT late last year. The offer was triggered after Aelios acquired some 62.5 million units via the market, bringing their stake in the REIT to 31.45 per cent. The bid failed as their shareholding fell short of the 50 per cent threshold when the offer closed.

Under Singapore’s Take-over Code, any entity controlling more than 30 per cent of a Reit must make a mandatory general offer to acquire its remaining units.

In Tuesday’s statement, Tang said he looks forward to working closely with the board and management to “review existing strategies and implement further value-adding initiatives to the benefit of all unitholders”.

Chong Kee Hiong, the manager’s chief executive officer, said his team remains focused on “disciplined execution to deliver long-term value for unitholders”. He noted: “After the handover, we will work closely with Mr Tang to deliver sustainable growth through pro-active capital and portfolio management.”

Suntec Reit holds a 66.35 per cent interest in Suntec Singapore Convention and Exhibition Centre.

It also holds one-third stakes in One Raffles Quay (ORQ), as well as the Marina Bay Financial Centre Towers (MBFC) 1 and 2 and the Marina Bay Link Mall. These are held in a joint-venture arrangement with Keppel Reit and Hongkong Land (HKL).

Last week, HKL said it was injecting its interests in ORQ and the MBFC towers into a new private fund that is expected to hold more than S$8 billion in assets under management at its inception.

Suntec Reit units rose S$0.01, or 0.7 per cent, to close at S$1.40 on Tuesday, ahead of the announcement.