SINGAPORE : Suntec REIT is reviewing its recent proposed acquisitions, the manager of the property trust, ARA Group, said in a statement on Wednesday.
No details were given but ARA says it may start discussions with the relevant parties.
Suntec had announced in June that it was buying over 12 properties from City Developments and WingTai Holdings for more than S$1 billion.
The acquisitions would swell the value of Suntec REIT's current portfolio by 50 percent to S$3.2 billion, and increase the net leasable area of its portfolio to 3.5 million square feet.
The purchase came after a failed attempt to buy into Wisma Atria and Ngee Ann City.
While REITs have been gaining popularity among Singapore investors, the property trusts are under some pressure to meet the yields promised to unitholders.
They have been looking for buying opportunities to boost their portfolio size.
However, in a speech last week, Temasek Holdings CEO Ho Ching warned property trusts against clever financial engineering aimed at boosting short-term performances.
In its statement, ARA says it concurs with Ms Ho's concerns and will review its recent acquisitions.
ARA is also waiving its front-end acquisition fees for future deals which Fortune REIT and Suntec REIT may enter into.
ARA is usually paid an upfront acquisition fee of 1 percent of the purchase price. - CNA
Suntec REIT is down 3 cents today closing at $1.16....
Wah lao....this Ho ching's words can affect the price of my shares...
