Suntec

Suntec: Raised $350m of equity on 19 Mar, raising free float market cap to $3.9b following it’s a$413m acquisition of 177 Pacific Highway in North Sydney in 4Q13. It is now the 2nd most liquid S-REIT. Gearing is expected to fall to 34% post equity raising, before rising to ~36% upon the expected completion of 177 Pacific Highway in 2016. StanChart thinks that Suntec REIT might buy Straits Trading Building in 2014 using debt, which will be neutral to the house. StanChart maintains O/PF on Suntec with slightly reduced TP to $1.83 from $1.88.