Masterbrand

$Suntec Reit(T82U.SG)The new sponsor may inject 9 Penang Road into the reit. Suntec Reit used to own 30% of this property before it sold its stake to SingHaiyi in 2021. It did not take up the pre-emptive rights to ORQ and MBC Tower 1 and 2 as the higher gearing required would dilute NAV and DPU. Apart from increasing operational efficiency, it will continue to focus on NAV and divesting mature assets and strata office units in Suntec City Office (the three floors put up on sale recently belong to HSBC Asset Management and not the reit). Such divestment may help close the gap between the NAV of $2.04 and the units’ trading price.