Suntec Reit trustee signs S$900m facility agreement

THE trustee of Suntec Real Estate Investment Trust (Suntec Reit) has entered into a S$900 million facility agreement with various banks.

The facility will be used to finance or refinance acquisitions and/or investments, refinance existing borrowings, and/or for general working capital purposes, Suntec Reit's manager said late Monday night.

Under a condition in the agreement, an event of default will occur if the manager ceases to be an affiliate of ARA Asset Management, or if it is no longer the manager of Suntec Reit and the replacement or substitute is not appointed according to the trust deed's terms or not approved by the majority lenders. Such approval from the majority lenders is not required if the replacement or substitute manager is an affiliate of ARA Asset Management.

A breach of this condition may affect facilities totalling about S$4.94 billion. Of that amount, around S$3.8 billion has been drawn and is outstanding as at Monday.

Units of Suntec Reit closed flat at S$1.48 on Monday.