Suntec @ 1.14

SINGAPORE PRESS: Suntec-CityDev Deal May Unravel

SINGAPORE (Dow Jones)--Suntec Real Estate Investment Trust's (T82U.SG) S$788 million deal to buy 11 properties from City Developments Ltd. (C09.SG) could unravel as the trust hasn't yet received regulatory approval for the purchase, the Straits Times reports.

According to the paper, the deal is supposed to be completed by Oct. 15 but that's not possible now judging by the little time remaining.

"The Oct. 15 date assumed Reit unit holders would have approved the acquisitions at a meeting to be held by Sept. 30. But that would have required the Reit to send unit holders a circular detailing the buy 14 days before the meeting," the Straits Times said.

According to the report, Yeo See Kiat, the chief executive of ARA Trust Management (Suntec), the Reit manager, confirmed the delay but declined to explain the difficulties in getting approvals from the Monetary Authority of Singapore and the Singapore Exchange.

Quoting industry sources, the Straits Times says the issues concerned Suntec's plan to defer part of the payment to CityDev which could mislead investors by improving yields in the short-term.

Web site: http://straitstimes.asia1.com.sg

Comment: Look like Suntec is facing a problem on the deal of CDL. I think the ARA management got alot of explaination to make on the meeting. Ever since the annoucement on the deal of CDL, they are facing negative report. Futhermore, the management status report on the deal is not that forthcoming. Need to improve on their PR skill to shareholder.

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