Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In <a href="https://skr.ma/rCoay" target="_blank" rel="noopener">Webjet (WJL AU): Undisclosed Buyer Buying</a>, I addressed the rumours that an undisclosed buyer with ~5% was seeking to add an additional 5% (19.6mn shares).</li>
<li>On the 12th May, <a href="https://www.smartkarma.com/entities/helloworld-travel-ltd" target="_blank" data-smartkarma-citation="entities:16134:1" rel="noopener">Helloworld Ltd (HLO AU)</a> emerged with a <a href="https://announcements.asx.com.au/asxpdf/20250512/pdf/06jmy55csx8lvm.pdf" target="_blank" rel="noopener">5.015% stake</a>. The same day, BGH said it had <a href="https://announcements.asx.com.au/asxpdf/20250512/pdf/06jnjftqrg7vpw.pdf" target="_blank" rel="noopener">10.76%</a>. BGH followed with a <a href="https://announcements.asx.com.au/asxpdf/20250513/pdf/06jpsydh9mwsff.pdf" target="_blank" rel="noopener">A$0.80/share NBIO</a>.</li>
<li>BGH wants a controlling stake in <a href="https://www.smartkarma.com/entities/webjet-group-limited" target="_blank" data-smartkarma-citation="entities:45177:1" rel="noopener">Webjet (WJL AU)</a>, and potentially maintaining the listing; suggesting an off-market Offer, with say, a 50% acceptance hurdle being one possibility. </li>
</ul>


In Webjet (WJL AU): Undisclosed Buyer Buying, I addressed the rumours that an undisclosed buyer with ~5% was seeking to add an additional 5% (19.6mn shares).
On the 12th May, Helloworld Ltd (HLO AU) emerged with a 5.015% stake. The same day, BGH said it had 10.76%. BGH followed with a A$0.80/share NBIO.
BGH wants a controlling stake in Webjet (WJL AU), and potentially maintaining the listing; suggesting an off-market Offer, with say, a 50% acceptance hurdle being one possibility. 


Webjet (WJL AU) In Play: BGH/Weiss' NBIO And Helloworld's Substantial Stake

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>PropertyGuru (PG) tried to raise around US$300m when it undertook a merger with Bridgetown 2 SPAC in Mar 2022.</li>
<li>The transaction valued PropertyGuru at an EV of US$1.35bn and equity value of US$1.78bn. It is now trading at less than half that valuation and with very limited liquidity.</li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note.</li>
</ul>


PropertyGuru (PG) tried to raise around US$300m when it undertook a merger with Bridgetown 2 SPAC in Mar 2022.
The transaction valued PropertyGuru at an EV of US$1.35bn and equity value of US$1.78bn. It is now trading at less than half that valuation and with very limited liquidity.
In this note, we will talk about the lock-up dynamics and updates since our last note.


PropertyGuru SPAC Lock-Up - Two PE’s with a US$450m Stake Are Stuck with a Liquidity Conundrum

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>
<a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934:1" rel="noopener">ESR-REIT</a> has announced a bump in the scheme consideration for <a href="https://www.smartkarma.com/entities/ara-logos-logistics-trust" target="_blank" data-smartkarma-citation="entities:937:1" rel="noopener">ARA LOGOS</a> unitholders. Cash increases from S$0.095 to S$0.097 per unit, plus 1.7729 <a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934:1" rel="noopener">ESR-REIT (EREIT SP)</a> units (from 1.6765 earlier).</li>
<li>This follows Glass Lewis and ISS recommending that <a href="https://www.smartkarma.com/entities/ara-logos-logistics-trust" target="_blank" data-smartkarma-citation="entities:937:1" rel="noopener">ARA LOGOS</a> unitholders vote against the Scheme. Plus there is a conflict of interest following <a href="https://www.smartkarma.com/entities/esr-cayman-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Cayman</a>'s acquisition of <a href="https://www.smartkarma.com/entities/ara-asset-management" target="_blank" data-smartkarma-citation="entities:13301:1" rel="noopener">ARA Asset Management</a>.</li>
<li>While the situation is far from a great outcome for <a href="https://www.smartkarma.com/entities/ara-logos-logistics-trust" target="_blank" data-smartkarma-citation="entities:937:1" rel="noopener">ARA LOGOS</a> unitholders, it is better than the earlier proposal and could pass muster this time around.</li>
</ul>



ESR-REIT has announced a bump in the scheme consideration for ARA LOGOS unitholders. Cash increases from S$0.095 to S$0.097 per unit, plus 1.7729 ESR-REIT (EREIT SP) units (from 1.6765 earlier).
This follows Glass Lewis and ISS recommending that ARA LOGOS unitholders vote against the Scheme. Plus there is a conflict of interest following ESR Cayman's acquisition of ARA Asset Management.
While the situation is far from a great outcome for ARA LOGOS unitholders, it is better than the earlier proposal and could pass muster this time around.


ESR-REIT's Improved Offer for ARA LOGOS: Two Cents More

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

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 <img src='https://api2.sgx.com/sites/default/files/2021-12/Capture_10.PNG' alt='Suntec REIT - CEO' />
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 <div class='content-caption'>Suntec REIT - CEO</div>
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With more than three decades of financial and real estate management experience under his belt, Chong Kee Hiong increasingly values the objectivity, flexibility and insight that comes with keeping an open mind. 
These characteristics in turn boost creativity, critical thinking, and lay the foundation for lifelong learning, said the Chief Executive Oﬃcer of the manager of SGX-listed Suntec Real Estate Investment Trust (REIT). 
“It’s important to have an open mind when faced with uncertainty and challenges; never rush into decisions,” he pointed out. “Often, if we know the issues, we’re likely to be able to find solutions - these issues are then within our control.” 
"We should focus on building our knowledge base, and the capacity to adapt and diversify, to ensure there are more “controllable” than “uncontrollable” events. This would help us to sleep better at night.” 
Open minds can also open a multitude of doors. “We must always be ready to take on new opportunities and challenges when they arise,” Chong added.  
“To do so, we have to adopt a mindset that actively and continuously looks for learning opportunities, so as to equip ourselves with diversified skillsets over time.” 
Chong, who is an elected Member of Parliament for Bishan-Toa Payoh GRC, was appointed CEO of the REIT manager, ARA Trust Management (Suntec) Ltd, in January 2019. 
Prior to joining the REIT Manager, Chong was CEO of OUE Hospitality REIT Management Pte Ltd from 2013 to 2018. He helmed The Ascott Ltd from 2012 to 2013, and Ascott Residence Trust Management Ltd from 2005 to 2012. Prior to that, he was Raffles Holdings Ltd’s Chief Financial Officer, and began his career in audit with KPMG Peat Marwick in 1990. 
Chong holds a Bachelor of Accountancy degree from National University of Singapore. He has also completed Harvard Business School's Advanced Management Program, and is a member of the Institute of Singapore Chartered Accountants. 
Looking back on his 30-year career journey, highlights include developing skillsets and nurturing talent. “The greatest satisfaction is being able to learn and mature on the job. It’s also heartening to see fellow colleagues growing in their roles, and to be able to play a part in their work and learning journeys,” Chong added. 
Listed in December 2004, Suntec REIT aims to invest in income-producing real estate primarily used for office and/or retail purposes. The REIT is managed by ARA Trust Management (Suntec) Ltd, a wholly owned subsidiary of ARA Asset Management Ltd, which is Asia Pacific’s largest real assets manager with US$95 billion in gross assets under management (AUM). 
Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development (including one of Singapore’s largest shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.  
Down under in Australia, it owns the following commercial buildings: a 100% interest in 177 Pacific Highway, Sydney, 100% of 21 Harris Street, Pyrmont, Sydney, 50% of Southgate Complex, Melbourne, 50% of Olderfleet 477 Collins Street, Melbourne, and 100% of 55 Currie Street, Adelaide.  Opportunities in Crisis 
To boost income stability and enhance geographical diversification, the REIT made its first foray in London, the UK, with the acquisition of a 50% stake in Nova Properties in December 2020. It also acquired The Minster Building, its second property in London, in June 2021.  
These assets were a strategic fit with Suntec REIT’s existing portfolio of high-quality commercial assets in Singapore and Australia. Lower yielding commercial assets were divested to partially fund these acquisitions, which were higher yielding than the assets divested, and accretive in both Distribution Per Unit (DPU) and Net Asset Value (NAV). 
“Despite pandemic-induced difficulties, we’ve succeeded in enhancing unitholder value through active portfolio management,” Chong noted. “The phrase “with every crisis, comes opportunity” has never been more apt.” 
Presently, Suntec REIT’s AUM stands at S$11.6 billion across 10 properties in Singapore (71% of AUM), Australia (16% of AUM), and the UK (13% of AUM). The REIT continues to be anchored by the resilient office sector, which contributes more than 85% of its total income. 
“While Suntec REIT remains Singapore-centric, we will further boost income stability by sourcing for good quality, accretive assets. Overseas assets are expected to grow to between 30% to 40% of AUM over the next few years,” he added. 
Apart from unitholders, the REIT is also focused on working with tenants for a mutually beneficial long-term relationship. “In these unprecedented times, the need to share risks and rewards in business relationships is amplified,” Chong noted. 
Suntec REIT has provided a raft of tenant assistance measures, including flexible operating hours, complimentary marketing support, increased seating capacity for food and beverage tenants, and rental rebates for retail tenants, to help mitigate challenges from the pandemic. Some of these measures continue to remain in place. 
Looking ahead, prospects for the REIT’s office portfolio remain bright. 
“While hybrid working arrangements are likely to continue, the physical office will remain relevant as the conduit to bring employees together to build corporate culture,” Chong noted. 
“In addition, aspects of work like teamwork, collaboration, innovation and mentoring are most effective in face-to-face settings. Surveys have also shown that employees want to return to the office three to four days a week, unlike contrasting feedback at the start of the pandemic.” 
The REIT expects its overall Singapore office portfolio to perform well, with revenue growth driven by higher occupancy and cumulative positive rent reversions achieved for the past 13 quarters. 
“Office revenues from Australia and UK assets will remain resilient as they are underpinned by strong occupancies and long weighted average lease expiries,” he added. “In particular, annual rent escalations provide upside to the Australia assets.” Future-Proofing Assets 
As for the REIT’s retail properties in Singapore, “green shoots of recovery” have appeared, particularly with the re-opening of the economy and high vaccination levels in the population. 
“Despite some border restrictions, and a tightening of safe-distancing measures, tenant sales at Suntec City Mall have continued to recover faster than footfall increases since the fourth quarter of 2020,” Chong said. “We’ve seen tenant sales recovering to 75% of 2019 levels versus footfall, which is at 50% of 2019 levels.” 
In addition, a shift in consumer behaviour has emerged - shoppers now window-shop much less. Instead, they seek novel and experiential concepts and brands. 
“At Suntec City, we’ve been proactively future-proofing our mall to better retain and attract customers,” he said. 
Despite COVID-19 disruptions, 19 new-to-market or new-to-Suntec brands were introduced this year, of which 50% catered to Singaporeans’ desire for new F&amp;B concepts. The REIT Manager has also increased the number of activity-based and experiential concepts to around 35% of the mall’s total leaseable area.  
“This, together with more than 25% of Suntec City dedicated to F&amp;B offerings, will strengthen the mall’s performance, making it more sustainable and allowing it to ride the wave of recovery.” 
Apart from day-to-day operational priorities, Suntec REIT is also focused on its Environmental, Social and Governance (ESG) goals. “We strongly believe in the importance of integrating sustainability into our strategies, operations and acquisitions,” Chong said. 
“Building certifications such as Greenmark, NABERS, BREEAM, LEEDS will become more important. Whilst the majority of our buildings across Singapore, Australia and London have attained green certification, we continue to work towards enhancing the ratings by improving energy and water consumption efficiencies and reducing use of natural resources.” 
In recognition of its sustainability leadership, Suntec REIT was awarded the GRESB highest accolade of Global Sector Leader for the Office-Listed category, and ranked Number One in Asia (Office). The REIT also retained the highest GRESB 5 Star rating. Established in 2009, GRESB is one of the leading ESG benchmarks for real estate and infrastructure investments globally. 
Meanwhile, for this 55-year-old, time outside the office revolves around serving the community. To recharge, he enjoys walking, running or golfing. 
In terms of advice for his four boys, aged 15 to 23, and staff, he has this to offer: Cultivate the desire and drive to work hard, through which you can then achieve your aspirations, and be in the position to help others. 
“Perseverance, maintaining the principles of being fair and objective, being sincere, and having respect for others - these are all values close to my heart.” Suntec REIT 
Listed in December 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest  integrated commercial development (including one of Singapore’s largest  shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina  Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall. Suntec REIT holds a 100% interest in a commercial building located at 177 Pacific Highway, Sydney, a 100% interest in a commercial building located at 21 Harris Street, Pyrmont, Sydney, a 50.0% interest in Southgate Complex, Melbourne, a 50.0% interest in a commercial building located at Olderfleet 477 Collins Street, Melbourne and a 100% interest in a commercial building located at 55 Currie Street, Adelaide, Australia. Suntec REIT also holds a 50.0% interest in Nova Properties and a 100% interest in The Minster Building, both located in London, UK. Suntec REIT is managed by an external manager, ARA Trust  Management  (Suntec) Ltd.  
The company website is: <a href="http://www.suntecreit.com.">www.suntecreit.com.</a> 
Click <a href="https://www.sgx.com/securities/equities/T82U">here </a>for the company's StockFacts page. 
For the quarter ended 30 September 2021 business update, click <a href="https://links.sgx.com/1.0.0/corporate-announcements/F8FA1JTWKSLKVMD9/687727_Suntec%20REIT%20-%203Q2021%20Press%20Release.pdf">here</a>. 
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. 
For previous editions of kopi-C: the Company brew, please click <a href="https://www.sgx.com/research-education/market-dialogues">here</a>.   
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to <a href="https://www.sgx.com/jennifer.t@sgx.com">jennifer.t@sgx.com</a>.
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    Suntec REIT - CEO


With more than three decades of financial and real estate management experience under his belt, Chong Kee Hiong increasingly values the objectivity, flexibility and insight that comes with keeping an open mind.  
These characteristics in turn boost creativity, critical thinking, and lay the foundation for lifelong learning, said the Chief Executive Oﬃcer of the manager of SGX-listed Suntec Real Estate Investment Trust (REIT).  
“It’s important to have an open mind when faced with uncertainty and challenges; never rush into decisions,” he pointed out. “Often, if we know the issues, we’re likely to be able to find solutions - these issues are then within our control.”  
"We should focus on building our knowledge base, and the capacity to adapt and diversify, to ensure there are more “controllable” than “uncontrollable” events. This would help us to sleep better at night.”  
Open minds can also open a multitude of doors. “We must always be ready to take on new opportunities and challenges when they arise,” Chong added.   
“To do so, we have to adopt a mindset that actively and continuously looks for learning opportunities, so as to equip ourselves with diversified skillsets over time.”  
Chong, who is an elected Member of Parliament for Bishan-Toa Payoh GRC, was appointed CEO of the REIT manager, ARA Trust Management (Suntec) Ltd, in January 2019.  
Prior to joining the REIT Manager, Chong was CEO of OUE Hospitality REIT Management Pte Ltd from 2013 to 2018. He helmed The Ascott Ltd from 2012 to 2013, and Ascott Residence Trust Management Ltd from 2005 to 2012. Prior to that, he was Raffles Holdings Ltd’s Chief Financial Officer, and began his career in audit with KPMG Peat Marwick in 1990.  
Chong holds a Bachelor of Accountancy degree from National University of Singapore. He has also completed Harvard Business School's Advanced Management Program, and is a member of the Institute of Singapore Chartered Accountants.  
Looking back on his 30-year career journey, highlights include developing skillsets and nurturing talent. “The greatest satisfaction is being able to learn and mature on the job. It’s also heartening to see fellow colleagues growing in their roles, and to be able to play a part in their work and learning journeys,” Chong added.  
Listed in December 2004, Suntec REIT aims to invest in income-producing real estate primarily used for office and/or retail purposes. The REIT is managed by ARA Trust Management (Suntec) Ltd, a wholly owned subsidiary of ARA Asset Management Ltd, which is Asia Pacific’s largest real assets manager with US$95 billion in gross assets under management (AUM).  
Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development (including one of Singapore’s largest shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.   
Down under in Australia, it owns the following commercial buildings: a 100% interest in 177 Pacific Highway, Sydney, 100% of 21 Harris Street, Pyrmont, Sydney, 50% of Southgate Complex, Melbourne, 50% of Olderfleet 477 Collins Street, Melbourne, and 100% of 55 Currie Street, Adelaide.   Opportunities in Crisis  
To boost income stability and enhance geographical diversification, the REIT made its first foray in London, the UK, with the acquisition of a 50% stake in Nova Properties in December 2020. It also acquired The Minster Building, its second property in London, in June 2021.   
These assets were a strategic fit with Suntec REIT’s existing portfolio of high-quality commercial assets in Singapore and Australia. Lower yielding commercial assets were divested to partially fund these acquisitions, which were higher yielding than the assets divested, and accretive in both Distribution Per Unit (DPU) and Net Asset Value (NAV).  
“Despite pandemic-induced difficulties, we’ve succeeded in enhancing unitholder value through active portfolio management,” Chong noted. “The phrase “with every crisis, comes opportunity” has never been more apt.”  
Presently, Suntec REIT’s AUM stands at S$11.6 billion across 10 properties in Singapore (71% of AUM), Australia (16% of AUM), and the UK (13% of AUM). The REIT continues to be anchored by the resilient office sector, which contributes more than 85% of its total income.  
“While Suntec REIT remains Singapore-centric, we will further boost income stability by sourcing for good quality, accretive assets. Overseas assets are expected to grow to between 30% to 40% of AUM over the next few years,” he added.  
Apart from unitholders, the REIT is also focused on working with tenants for a mutually beneficial long-term relationship. “In these unprecedented times, the need to share risks and rewards in business relationships is amplified,” Chong noted.  
Suntec REIT has provided a raft of tenant assistance measures, including flexible operating hours, complimentary marketing support, increased seating capacity for food and beverage tenants, and rental rebates for retail tenants, to help mitigate challenges from the pandemic. Some of these measures continue to remain in place.  
Looking ahead, prospects for the REIT’s office portfolio remain bright.  
“While hybrid working arrangements are likely to continue, the physical office will remain relevant as the conduit to bring employees together to build corporate culture,” Chong noted.  
“In addition, aspects of work like teamwork, collaboration, innovation and mentoring are most effective in face-to-face settings. Surveys have also shown that employees want to return to the office three to four days a week, unlike contrasting feedback at the start of the pandemic.”  
The REIT expects its overall Singapore office portfolio to perform well, with revenue growth driven by higher occupancy and cumulative positive rent reversions achieved for the past 13 quarters.  
“Office revenues from Australia and UK assets will remain resilient as they are underpinned by strong occupancies and long weighted average lease expiries,” he added. “In particular, annual rent escalations provide upside to the Australia assets.”  Future-Proofing Assets  
As for the REIT’s retail properties in Singapore, “green shoots of recovery” have appeared, particularly with the re-opening of the economy and high vaccination levels in the population.  
“Despite some border restrictions, and a tightening of safe-distancing measures, tenant sales at Suntec City Mall have continued to recover faster than footfall increases since the fourth quarter of 2020,” Chong said. “We’ve seen tenant sales recovering to 75% of 2019 levels versus footfall, which is at 50% of 2019 levels.”  
In addition, a shift in consumer behaviour has emerged - shoppers now window-shop much less. Instead, they seek novel and experiential concepts and brands.  
“At Suntec City, we’ve been proactively future-proofing our mall to better retain and attract customers,” he said.  
Despite COVID-19 disruptions, 19 new-to-market or new-to-Suntec brands were introduced this year, of which 50% catered to Singaporeans’ desire for new F&amp;B concepts. The REIT Manager has also increased the number of activity-based and experiential concepts to around 35% of the mall’s total leaseable area.   
“This, together with more than 25% of Suntec City dedicated to F&amp;B offerings, will strengthen the mall’s performance, making it more sustainable and allowing it to ride the wave of recovery.”  
Apart from day-to-day operational priorities, Suntec REIT is also focused on its Environmental, Social and Governance (ESG) goals. “We strongly believe in the importance of integrating sustainability into our strategies, operations and acquisitions,” Chong said.  
“Building certifications such as Greenmark, NABERS, BREEAM, LEEDS will become more important. Whilst the majority of our buildings across Singapore, Australia and London have attained green certification, we continue to work towards enhancing the ratings by improving energy and water consumption efficiencies and reducing use of natural resources.”  
In recognition of its sustainability leadership, Suntec REIT was awarded the GRESB highest accolade of Global Sector Leader for the Office-Listed category, and ranked Number One in Asia (Office). The REIT also retained the highest GRESB 5 Star rating. Established in 2009, GRESB is one of the leading ESG benchmarks for real estate and infrastructure investments globally.  
Meanwhile, for this 55-year-old, time outside the office revolves around serving the community. To recharge, he enjoys walking, running or golfing.  
In terms of advice for his four boys, aged 15 to 23, and staff, he has this to offer: Cultivate the desire and drive to work hard, through which you can then achieve your aspirations, and be in the position to help others.  
“Perseverance, maintaining the principles of being fair and objective, being sincere, and having respect for others - these are all values close to my heart.”   Suntec REIT  
Listed in December 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest  integrated commercial development (including one of Singapore’s largest  shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina  Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall. Suntec REIT holds a 100% interest in a commercial building located at 177 Pacific Highway, Sydney, a 100% interest in a commercial building located at 21 Harris Street, Pyrmont, Sydney, a 50.0% interest in Southgate Complex, Melbourne, a 50.0% interest in a commercial building located at Olderfleet 477 Collins Street, Melbourne and a 100% interest in a commercial building located at 55 Currie Street, Adelaide, Australia. Suntec REIT also holds a 50.0% interest in Nova Properties and a 100% interest in The Minster Building, both located in London, UK. Suntec REIT is managed by an external manager, ARA Trust  Management  (Suntec) Ltd.   
The company website is: www.suntecreit.com.  
Click here for the company's StockFacts page.  
For the quarter ended 30 September 2021 business update, click here.  
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  
For previous editions of kopi-C: the Company brew, please click here.    
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.



Suntec REIT: Enhancing Value, Building Resilience

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 <img src='https://api2.sgx.com/sites/default/files/2021-12/SRE-CEO.png' alt='SRE- CEO' />
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 <div class='content-caption'>SRE- CEO</div>
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Despite spending nearly three decades of his career in the real estate investment and management industry, Desmond Tang has yet to experience a dull day. 
That’s because the real estate industry has continued to prove its resilience amid disruptive trends. And Tang’s start-up experience - prior to leading Straits Real Estate (SRE), a wholly owned subsidiary of SGX-listed The Straits Trading Company - has come in handy. 
“Real estate is never boring,” said Tang, the Chief Executive Officer of SRE. “Despite its image as a traditional old-fashioned industry - a common parochial view - real estate is difficult to replace, even as economies evolve, and technology changes lives and businesses.” 
“People talk about modernising real estate, but the truth of matter is that it has never stopped adapting itself to new uses, new user requirements, and new occupier habits,” he added. 
“When an old trade like real estate juxtaposes with never-ending changes in space usage, it’s both captivating and invigorating. It’s very much like playing a 40-year-old original-pressed vinyl on a modern sound system, and being surprised by the outcome.” 
The 55-year-old, who holds a Bachelor of Science with Honours degree in Real Estate from the National University of Singapore, and a Master of Applied Finance degree from Macquarie University, has helmed SRE since February 2014. 
At various times prior to joining SRE, he was Managing Director and Co-Head at Alpha Investment Partners, and Managing Director at GrowthPath Capital, which he co-founded.  
“I’ve possibly had more involvement with start-up businesses than most real estate investment professionals,” Tang acknowledged. “Every start-up is an adventure, and every adventure requires a first step, as the Cheshire Cat in Alice of Wonderland says.” 
“But mostly, that first step is error-laden, so the ability to respond, adjust and change course often makes the difference between ultimate success and failure. When you participate in a start-up knowing the odds are at best even, you‘re driven to better your chances, create options and seek control of your own luck. My career experience would have been that much poorer without all of that.” 
Now at SRE, Tang is grateful for having had the opportunity to create and build the company from scratch into what it is today.  
“My previous experience with start-up companies certainly helped. Having been mostly a real estate fund manager prior to this role, it was necessary for me and my colleagues to decide early on how the investment style should be adapted for a publicly listed company like Straits Trading,” he recalled. 
“We also worked on delivering quick, tangible results to garner confidence from the market. We were fortunate to achieve what we planned quite quickly, kept our discipline, and continued to produce the goods over the years.” Growth Driver 
SRE was established as a private equity real estate investment company in 2013. Since then, it has grown to manage a diverse investment portfolio, with over S$2 billion in assets spanning China, Malaysia, Singapore, Japan, Australia and South Korea. Its portfolio includes logistics, retail, office and business park properties. 
SRE is an important earnings driver and growth engine for Straits Trading. The latter is a conglomerate-investment company with operations and financial interests in resources, property, and hospitality. 
These include majority or strategic stakes in the world’s third-largest tin producer, Malaysia Smelting Corporation, which is dual listed on Bursa Malaysia and SGX; ARA Asset Management and Far East Hospitality Holdings, as well as a diversified property portfolio and real estate investments that are wholly owned by the Group. 
In August 2021, Straits Trading announced it was selling its 19% stake in ARA Asset Management for S$1.14 billion to Hong Kong-listed ESR Cayman. 
For Tang, a key priority is ensuring that SRE remains relevant to its key stakeholders - namely its shareholders and employees - as it navigates the markets and takes advantage of business opportunities.  
“The alignment of interest between stakeholders is not always natural, so you must work on finding the balance that gives you sustainability,” he added. 
“I emphasise “work on” because you cannot leave that to chance. It requires conscious effort to ensure the company remains valid to shareholders and employees as environment and circumstances evolve.” 
In particular, SRE has been anticipating and keeping abreast of new trends following the onset of the pandemic. 
“COVID-19 brought about massive and swift changes in space usage habits that the industry could never have anticipated,” Tang noted. “Lockdowns, work-from-home regimes, exponential growth in online retailing, and safe-distancing requirements all contributed to the disruption.” 
“So we zeroed-in on opportunities that provide short- to mid-term insulation against current challenges, with asset quality to benefit from the eventual market recovery, such as new economy assets and business parks.” 
Looking ahead, SRE will continue to focus on building a portfolio of predominantly income-producing assets with stable cash flows. In the near term, it is looking to acquire business parks and warehouse retail parks in the UK, as well as logistics assets across key geographies.  
It has also ventured into greenfield developments in South Korea and Australia to reap development upside through build-to-suit opportunities, which are geared to fulfil secular, or longer term, demand. 
“We always focus on return maximisation by driving capital efficiency. This is reflected in SRE’s consistent ROE track record of 10% over the last five years,” Tang pointed out, referring to the key industry metric of return on equity. 
"We achieve this through a disciplined approach to capital allocation, risk pricing, asset management and divestment - all of which ensure capital is recycled into higher-returning investments in a systematic and timely manner. As part of our active asset management process, we also implement enhancement initiatives to improve the marketability and operational efficiency of these assets.” Burgeoning Potential 
In addition, the outlook remains bright in SRE’s key markets. South Korea offers enormous potential, driven by its rapidly emerging domestic e-commerce market and a supply shortfall in modern logistics assets, while in Japan, its real estate sector has emerged as one of the most resilient and best-performing property investment markets in the world amidst the pandemic.  
As for China, the quick containment of the pandemic and swift rebound in consumption has instilled confidence in domestic and foreign brands, which is set to spur further investment in the expansion of retail store networks in the country.  
Meanwhile, in Australia, a robust economy, continued expansion in e-commerce and infrastructure spending, coupled with a shortage of high-specification logistics space, continues to underpin growth. 
Despite such rosy prospects, challenges loom, not the least of which is how the pandemic has dramatically altered lives and livelihoods. 
“The current overriding concern, from the perspective of a real estate investment company, is how much of the changes in user habits that occurred during the pandemic are going to be permanent, and how much of that are temporary,” Tang said. 
“What can we do to our portfolio of properties to keep them relevant to users? What’s the impact on asset value if some of the pandemic-induced changes become permanent? Must new buildings be designed for a future pandemic that may or may not happen?” 
SRE is also competing with record amounts of private capital dry powder for deals - many investors are flush with cash and looking to deploy their funds.  
“There’s also a mismatch in price expectations between potential buyers and sellers,” he added. “The low interest-rate environment is a double-edged sword - there’s ample funding for investors, but also stronger holding and bargaining power for owners of distressed assets due to lower borrowing costs.” 
However, unlike conventional private equity funds, SRE is not constrained by a mandate. This gives the company the agility to allocate capital in the most efficient manner, allowing it to punch above its weight despite its relatively small size. 
“We have the advantage of being sector-agnostic, of being able to pursue opportunities that generate attractive risk-adjusted returns,” Tang added. 
“Our investment decisions are not only informed by our market outlook or the competitive landscape, but also the expected return on investment or invested capital, and our country-specific strategy.” 
 

The Straits Trading Company Ltd 
Incorporated in 1887, Straits Trading is a conglomerate-investment company with operations, as well as financial interests, in resources, property, and hospitality. These include majority or strategic stakes in Malaysia Smelting Corporation - the world’s third-largest tin producer that is dual-listed on Bursa Malaysia and SGX - ARA Asset Management, Far East Hospitality Holdings, as well as a diversified property portfolio and real estate investments that are wholly owned by the Group. In August 2021, Straits Trading announced it was selling its 19% stake in ARA Asset Management for S$1.14 billion to Hong Kong-listed ESR Cayman. 
The company website is: <a href="http://www.stc.com.sg">www.stc.com.sg</a> 
Click <a href="https://www.sgx.com/securities/equities/S20">here </a>for the company's StockFacts page. 
For the half year ended 30 June 2021 financial results, click <a href="https://links.sgx.com/1.0.0/corporate-announcements/X9SCUY9SG97QHZ9Z/678773_STC%201H21%20PR_Release%20FINAL%20FOR%20SGX%2013.08.2021.pdf">here</a>. 
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. 
For previous editions of kopi-C: the Company brew, please click <a href="https://www.sgx.com/research-education/market-dialogues">here</a>.   
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to <a href="https://www.sgx.com/jennifer.t@sgx.com">jennifer.t@sgx.com</a>.
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    SRE- CEO


Despite spending nearly three decades of his career in the real estate investment and management industry, Desmond Tang has yet to experience a dull day.  
That’s because the real estate industry has continued to prove its resilience amid disruptive trends. And Tang’s start-up experience - prior to leading Straits Real Estate (SRE), a wholly owned subsidiary of SGX-listed The Straits Trading Company - has come in handy.  
“Real estate is never boring,” said Tang, the Chief Executive Officer of SRE. “Despite its image as a traditional old-fashioned industry - a common parochial view - real estate is difficult to replace, even as economies evolve, and technology changes lives and businesses.”  
“People talk about modernising real estate, but the truth of matter is that it has never stopped adapting itself to new uses, new user requirements, and new occupier habits,” he added.  
“When an old trade like real estate juxtaposes with never-ending changes in space usage, it’s both captivating and invigorating. It’s very much like playing a 40-year-old original-pressed vinyl on a modern sound system, and being surprised by the outcome.”  
The 55-year-old, who holds a Bachelor of Science with Honours degree in Real Estate from the National University of Singapore, and a Master of Applied Finance degree from Macquarie University, has helmed SRE since February 2014.  
At various times prior to joining SRE, he was Managing Director and Co-Head at Alpha Investment Partners, and Managing Director at GrowthPath Capital, which he co-founded.   
“I’ve possibly had more involvement with start-up businesses than most real estate investment professionals,” Tang acknowledged. “Every start-up is an adventure, and every adventure requires a first step, as the Cheshire Cat in Alice of Wonderland says.”  
“But mostly, that first step is error-laden, so the ability to respond, adjust and change course often makes the difference between ultimate success and failure. When you participate in a start-up knowing the odds are at best even, you‘re driven to better your chances, create options and seek control of your own luck. My career experience would have been that much poorer without all of that.”  
Now at SRE, Tang is grateful for having had the opportunity to create and build the company from scratch into what it is today.   
“My previous experience with start-up companies certainly helped. Having been mostly a real estate fund manager prior to this role, it was necessary for me and my colleagues to decide early on how the investment style should be adapted for a publicly listed company like Straits Trading,” he recalled.  
“We also worked on delivering quick, tangible results to garner confidence from the market. We were fortunate to achieve what we planned quite quickly, kept our discipline, and continued to produce the goods over the years.”  Growth Driver  
SRE was established as a private equity real estate investment company in 2013. Since then, it has grown to manage a diverse investment portfolio, with over S$2 billion in assets spanning China, Malaysia, Singapore, Japan, Australia and South Korea. Its portfolio includes logistics, retail, office and business park properties.  
SRE is an important earnings driver and growth engine for Straits Trading. The latter is a conglomerate-investment company with operations and financial interests in resources, property, and hospitality.  
These include majority or strategic stakes in the world’s third-largest tin producer, Malaysia Smelting Corporation, which is dual listed on Bursa Malaysia and SGX; ARA Asset Management and Far East Hospitality Holdings, as well as a diversified property portfolio and real estate investments that are wholly owned by the Group.  
In August 2021, Straits Trading announced it was selling its 19% stake in ARA Asset Management for S$1.14 billion to Hong Kong-listed ESR Cayman.  
For Tang, a key priority is ensuring that SRE remains relevant to its key stakeholders - namely its shareholders and employees - as it navigates the markets and takes advantage of business opportunities.   
“The alignment of interest between stakeholders is not always natural, so you must work on finding the balance that gives you sustainability,” he added.  
“I emphasise “work on” because you cannot leave that to chance. It requires conscious effort to ensure the company remains valid to shareholders and employees as environment and circumstances evolve.”  
In particular, SRE has been anticipating and keeping abreast of new trends following the onset of the pandemic.  
“COVID-19 brought about massive and swift changes in space usage habits that the industry could never have anticipated,” Tang noted. “Lockdowns, work-from-home regimes, exponential growth in online retailing, and safe-distancing requirements all contributed to the disruption.”  
“So we zeroed-in on opportunities that provide short- to mid-term insulation against current challenges, with asset quality to benefit from the eventual market recovery, such as new economy assets and business parks.”  
Looking ahead, SRE will continue to focus on building a portfolio of predominantly income-producing assets with stable cash flows. In the near term, it is looking to acquire business parks and warehouse retail parks in the UK, as well as logistics assets across key geographies.   
It has also ventured into greenfield developments in South Korea and Australia to reap development upside through build-to-suit opportunities, which are geared to fulfil secular, or longer term, demand.  
“We always focus on return maximisation by driving capital efficiency. This is reflected in SRE’s consistent ROE track record of 10% over the last five years,” Tang pointed out, referring to the key industry metric of return on equity.  
"We achieve this through a disciplined approach to capital allocation, risk pricing, asset management and divestment - all of which ensure capital is recycled into higher-returning investments in a systematic and timely manner. As part of our active asset management process, we also implement enhancement initiatives to improve the marketability and operational efficiency of these assets.”  Burgeoning Potential  
In addition, the outlook remains bright in SRE’s key markets. South Korea offers enormous potential, driven by its rapidly emerging domestic e-commerce market and a supply shortfall in modern logistics assets, while in Japan, its real estate sector has emerged as one of the most resilient and best-performing property investment markets in the world amidst the pandemic.   
As for China, the quick containment of the pandemic and swift rebound in consumption has instilled confidence in domestic and foreign brands, which is set to spur further investment in the expansion of retail store networks in the country.   
Meanwhile, in Australia, a robust economy, continued expansion in e-commerce and infrastructure spending, coupled with a shortage of high-specification logistics space, continues to underpin growth.  
Despite such rosy prospects, challenges loom, not the least of which is how the pandemic has dramatically altered lives and livelihoods.  
“The current overriding concern, from the perspective of a real estate investment company, is how much of the changes in user habits that occurred during the pandemic are going to be permanent, and how much of that are temporary,” Tang said.  
“What can we do to our portfolio of properties to keep them relevant to users? What’s the impact on asset value if some of the pandemic-induced changes become permanent? Must new buildings be designed for a future pandemic that may or may not happen?”  
SRE is also competing with record amounts of private capital dry powder for deals - many investors are flush with cash and looking to deploy their funds.   
“There’s also a mismatch in price expectations between potential buyers and sellers,” he added. “The low interest-rate environment is a double-edged sword - there’s ample funding for investors, but also stronger holding and bargaining power for owners of distressed assets due to lower borrowing costs.”  
However, unlike conventional private equity funds, SRE is not constrained by a mandate. This gives the company the agility to allocate capital in the most efficient manner, allowing it to punch above its weight despite its relatively small size.  
“We have the advantage of being sector-agnostic, of being able to pursue opportunities that generate attractive risk-adjusted returns,” Tang added.  
“Our investment decisions are not only informed by our market outlook or the competitive landscape, but also the expected return on investment or invested capital, and our country-specific strategy.” 
 

The Straits Trading Company Ltd  
Incorporated in 1887, Straits Trading is a conglomerate-investment company with operations, as well as financial interests, in resources, property, and hospitality. These include majority or strategic stakes in Malaysia Smelting Corporation - the world’s third-largest tin producer that is dual-listed on Bursa Malaysia and SGX - ARA Asset Management, Far East Hospitality Holdings, as well as a diversified property portfolio and real estate investments that are wholly owned by the Group. In August 2021, Straits Trading announced it was selling its 19% stake in ARA Asset Management for S$1.14 billion to Hong Kong-listed ESR Cayman.  
The company website is: www.stc.com.sg  
Click here for the company's StockFacts page.  
For the half year ended 30 June 2021 financial results, click here.  
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  
For previous editions of kopi-C: the Company brew, please click here.    
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.



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