Proposed Acquisition of Suntec REIT Manager by Gordon Tang’s Acrophyte Asset Management

Key Highlights of the Announcement

• Acrophyte Asset Management Pte. Ltd., controlled by Mr. Gordon Tang, has entered into a conditional agreement to acquire a 100% indirect interest in ESR Trust Management (Suntec) Limited, the manager of Suntec REIT.
• The acquisition is subject to regulatory approval by the Monetary Authority of Singapore.
• Mr. Gordon Tang, together with his affiliates, is already a major stakeholder in Suntec REIT, with a 35.7% stake, making the Tang Family the largest unitholder. ESR currently holds a 10.8% stake.
• Mr. Tang emphasized the acquisition as an extension of his long-term commitment to Suntec REIT, with the intent to work closely with the Board and management to review existing strategies and implement value-adding initiatives.
• The CEO of Suntec REIT’s Manager, Mr. Chong Kee Hiong, assured investors that the current team remains focused on disciplined execution to deliver long-term value and maintain Suntec REIT’s market position. He signaled close post-acquisition collaboration with Mr. Tang to drive sustainable growth.

Details of the Transaction

Under the conditional sale and purchase agreement, Acrophyte will acquire all of ESR Group Limited’s indirect interest in the Manager. The transaction is not yet complete and is contingent upon approval from the Monetary Authority of Singapore. No details were provided regarding the transaction value or timeline for completion.

About Suntec REIT

• Listed since December 2004, Suntec REIT owns landmark commercial properties in Singapore, including Suntec City, a 66.3% interest in Suntec Singapore Convention & Exhibition Centre, and stakes in One Raffles Quay and Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall.
• The REIT also has a diversified international portfolio, holding full or partial ownership in commercial assets in Sydney, Melbourne, Adelaide, and London.
• Suntec REIT is externally managed by ESR Trust Management (Suntec) Limited, a subsidiary of ESR Asset Management Limited.

About Acquiring Parties

• Tang Organization Pte. Ltd., established in the 1990s, is a leading Singapore-based, diversified real estate conglomerate with expertise spanning property development, investment, fund and asset management, and construction.
• The Tang Organization’s affiliate, SingHaiyi Group Pte. Ltd., has a strong track record in the office and retail sectors and was formerly listed on the SGX before being privatized by the Tang Family.
• The Tang Family’s status as the largest unitholder in Suntec REIT signals a strong alignment of interests with all unitholders. The group has committed to prudent stewardship, disciplined capital management, and sustainable value creation as the new sponsor and shareholder of the Manager.

Key Points for Shareholders and Price Sensitivity

• This transaction is significant and potentially price sensitive for Suntec REIT units. The change in control of the Manager may lead to a shift in strategic direction, capital management practices, and portfolio management, all of which could have material impact on the REIT’s performance and valuation.
• The Tang Family’s increased involvement (as both the largest unitholder and soon-to-be owner of the Manager) could result in enhanced alignment of interests with other unitholders, potentially leading to more aggressive value-creation strategies or changes in capital allocation.
• The transaction is still pending regulatory approval, and there are no guarantees it will complete as planned. Investors should monitor for further announcements regarding the approval process and any strategic changes post-acquisition.
• Any change in management strategy, asset divestments/acquisitions, or capital structure following the completion of the transaction could move Suntec REIT’s unit price.

Contact and Further Information

For further details, investors may contact ESR Trust Management (Suntec) Limited at +65 6835 9232 or reach out to Melissa Chow (Manager, Investor Relations) at [email protected] or Eugenia Ong (Associate Director, Portfolio Management) at [email protected].

Disclaimer

This article is for information purposes only and does not constitute an offer or solicitation to buy or sell units in Suntec REIT. The value of investments in Suntec REIT may rise or fall, and past performance is not necessarily indicative of future results. Investors should be aware that the completion of the proposed acquisition is subject to regulatory approval and other conditions. Please consult your financial advisor before making investment decisions.

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