Acrophyte Asset Management, an entity controlled by Gordon Tang, has entered into a conditional sale and purchase agreement with ESR Group’s subsidiaries to acquire ESR’s 100% indirect interest in the manager of Suntec REIT.
“With capable leadership from the manager and seasoned oversight from the board, Suntec REIT has built an iconic portfolio of assets with a focus on Singapore,” says Tang.
“We have consistently shown our confidence in Suntec REIT, via our significant long-term unitholding,” he adds.
Gordon and Celine Tang, through their vehicle Aelios, made a mandatory conditional offer of $1.16 per unit in Suntec REIT on Dec 5, 2024. The offer came after Aelios acquired some 62.5 million units via the market, bringing their stake in the REIT to 31.45%.
The offer was increased to $1.19 per unit on Jan 8.
“Acquiring the manager is an extension of our commitment to Suntec REIT. We look forward to working closely with the Board and the management team to review existing strategies and implement further value-adding initiatives to the benefit of all unitholders,” says Tang.
See also: Manulife US REIT’s unitholders vote to sell properties, make acquisitions beyond US office sector
Chong Kee Hiong, CEO of Suntec REIT’s manager, says his team remains focused on delivering long-term value for the REIT’s unitholders and to upload the REIT’s leading market position.
“After the handover, we will work closely with Mr. Tang to deliver sustainable growth through pro-active capital and portfolio management,” says Chong.
Tang currently owns a total stake of 35.7% in Suntec REIT, directly and through his affiliates. ESR currently owns a 10.8% stake in Suntec REIT.
See also: ESR-REIT sells 8 properties to Brookfield for $338.1 million
The proposed acquisition is subject to the approval of the Monetary Authority of Singapore.
Units in Suntec REIT closed 1 cent higher or 0.72% up at $1.40 on Dec 16.
