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Suntec Reit unit obtains A$450m green loan

THE trustee of Suntec Real Estate Investment Trust’s (Suntec Reit) wholly-owned Australian subsidiary has taken out a A$450 million (S$378.9 million) green loan.

It will be used to refinance existing borrowings, finance or refinance acquisitions and/or investments and/or for general working capital purposes, Suntec Reit’s manager said in a bourse filing on Thursday evening.

In Australia, the real estate investment trust holds the entire interest in a commercial building in Sydney, a half stake in Melbourne integrated development Southgate Complex, a half stake in a commercial building to be developed on Collins Street in Melbourne, and a 100 per cent interest in a commercial building in Adelaide.

The green loan agreement includes a condition that stipulates that it will be a review event if Suntec Reit’s manager ceases to be a subsidiary of ARA Asset Management, or if it ceases to be the manager of Suntec Reit unless the replacement or substitute manager is an affiliate of ARA.

If the review event occurs, the lender may require the Australian subsidiary, Suntec Reit (Australia) Trust, to prepay the outstanding amount under the green loan. About S$3.49 billion (excluding interest) of Suntec Reit’s debt facilities may be affected in this situation, including from cross defaults, and of this amount, S$3.24 billion is drawn and outstanding as at Thursday.

Units of Suntec Reit tumbled S$0.13 or 10.3 per cent to close at S$1.13 on Thursday, before the announcement.