Suntec @ 1.15

Extracted From Dow Jones

Singapore Suntec To Hike Carpark Charges From Oct 1

SINGAPORE (Dow Jones)--Suntec City, Singapore's largest office and retail development by floor space, will hike carpark charges from Oct. 1 in a move that could add a few million dollars to Suntec Real Estate Investment Trust's (T82U.SG) bottom-line.

Confirming the increase, Suntec REIT Chief Executive Yeo See Kiat said late Wednesday he expects the price revision to improve carpark utilization rates. This will result in more cars coming in and out of the carpark "which would also translate to improved business for tenants," he added.

The increased carpark fees won't go directly to Suntec REIT as the 3,125 lot carpark comes under the management corporation, an entity that maintains the entire Suntec City complex on behalf of all its owners.

Suntec REIT, which owns about 75% of the strata units in Suntec City, should, however, benefit from reduced contributions to the management corporation in the months ahead, a source linked to Suntec City said.

According to its Nov. 29, 2004 prospectus, Suntec REIT pays the management corporation around S$17.5 million a year in maintenance fees.

Peak hour parking charges at Suntec City are currently among the lowest in Singapore's central business district at S$1.05 an hour or part thereof for the first three hours, and S$1.05 per subsequent half hour.

But starting Oct. 1, the charges will be revised to S$1.05 for the first hour, and S$1.05 for every subsequent half hour. While a person who parks his car for one hour won't be affected, someone who parks there for two to three hours will have to pay 50%-67% more in parking fees.

By way of comparison, the government's Urban Redevelopment Authority charges S$1.00 for every half hour during peak hours while landlords in the central business district charge as much as S$2.50 per half hour.

Suntec City's off-peak rate - which applies 5:00 p.m. to midnight on weekdays and on weekends and public holidays - will be adjusted to S$1.05 for the first two hours and S$1.05 per hour thereafter, up from the current S$1.05 for every two hours

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