Friday, October 31, 2008

Daily news - 31 Oct

Refinancing tops Suntec Reit agenda
Suntec Real Estate Investment Trust (Reit) – With credit concerns looming over the market, refinancing is now top of the agenda for Suntec Real Estate Investment Trust (Reit). 'While we have no major financing needs in the next 12 months, we are keenly aware of the current global financing crisis and liquidity crunch,' said Yeo See Kiat, CEO of Suntec Reit manager ARA Trust Management (Suntec). 'Refinancing of our $700 million CMBS loan due in December 2009 is one of our key priorities.' For FY2009, Suntec Reit has debts of $40 million, $85 million and $700 million maturing in April, May and December respectively. Its gearing ratio at Sept 30 was 31.9 per cent. But refinancing should not pose a major problem, Mr Yeo said. 'We have got a good partner in Cheung Kong. The financial institutions know who we are.' ARA Trust Management (Suntec) is linked to Cheung Kong Group, a major Hong Kong conglomerate. Mr Yeo was addressing financing concerns at a briefing on Suntec Reit's results for its fourth quarter ended Sept 30.

Source: Kim Eng

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