From the perspective of DBS, while they view this property as a potential pipeline for Suntec REIT, they do not expect any acquisition to materialise in the near term.
DBS Group Research is keeping its “buy” recommendation and a target price of $1.60 for Suntec REIT (SGX:T82U
) , following media reports indicating that 9 Penang Road may potentially be injected into the REIT.
In an April 16 note, DBS mentions that the asset currently held by the Tang Organization, which is Suntec REIT’s sponsor, is an eight-storey commercial development strategically located along Orchard Road and Dhoby Ghaut. The property was completed in 2019, and houses two Grade A office towers and an ancillary retail space. Its anchor tenant is UBS Singapore.
