Rights issue ‘last priority’ for Suntec Reit as it targets S$100 million in strata divestments

RAISING capital via a rights issue to address gearing levels is the “last priority” for Suntec Reit, Chong Kee Hiong, chief executive of the manager, said on Monday (Oct 23).

“In this climate, getting unitholders to fork out more money just to make the balance sheet stronger, I don’t think is the right thing to do,” he said. “We are still focused on divestments, and the market is still there for divestment.”

The real estate investment trust (Reit) manager is looking to divest more strata units in Suntec office towers, and it aims for S$100 million in such divestments this year.