Suntec REIT

Suntec REIT: Stan Chart downgrades Suntec from Outperform to In-line, cuts TP from $2.06 to $1.94. There is possibility of free flat falling below 90%, which significantly reduces the probability of a privatization, hence the rate cut. If Stratiits Trading Company could indeed unlock $450m from the proposed sales of Straits Trading Building and uses all the proceeds to increase its stake in Suntec REIT, then the later’s free float could fall from 94% to 84%. The likelihood of privatisation is greatly reduced