HIGL indirectly holds Suntec International Convention and Exhibition Centre (Suntec Singapore).
Following the subscription, Suntec REIT’s share in HPIL increased to approximately 57.9% and its effective interest in HIGL increased to approximately 66.3%.
Prior to the subscription, Suntec Harmony held 20.0% of HIGL and 51.0% of HPIL. HPIL in turn, held 80% of HIGL. Accordingly, Suntec REIT had a 60.8% interest in HIGL.
According to the REIT’s manager, the purpose of the capital injection is to support Suntec Singapore in the face of challenges arising from the Covid-19 pandemic.
To fund the business needs of Suntec Singapore, HIGL issued an equity call notice to its shareholders, Suntec Harmony and HPIL. HPIL in turn, issued a notice to its own shareholders, including Suntec Harmony.
The convention centre has been temporarily closed till Aug 2 to reduce operating costs, for now.
Suntec REIT predicts that the recovery will be slow in 2020, led by smaller-scale events, meetings and consumer shows when current measures on safe distancing are eased. International conventions and events will also remain weak.
Units in Suntec REIT closed 2 cents higher, or 1.4% up, at $1.43 on Wednesday, prior to the announcement.
