Suntec REIT may soon find itself funding the acquisition of a larger stake in Southgate Complex, and this could be negative for the REIT’s credit ratings, said Moody’s.
Southgate Complex is a freehold, mixed-use property in Melbourne comprising of two office towers, a three-story retail podium, and a car park with 1,026 lots.
Suntec REIT first announced in early August 2016 that it was acquiring a 50% interest in Southgate Complex for AUD289 million (USD213 million).
The REIT then went on to list SGD300 million (USD221 million) in aggregate principal amount of 1.75% convertible bonds, in part to fund the property’s acquisition.
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