SunREIT's trustee takes up Sunway's RM60m commercial paper

KUALA LUMPUR (Oct 13): Sunway Real Estate Investment Trust (SunREIT) said its trustee RHB Trustees Bhd has subscribed to its substantial unitholder Sunway Bhd's one-month commercial paper that carries a nominal value of RM60 million.

It said in a statement to Bursa Malaysia that the subscription yesterday, at a discount rate of 3.8% per annum, followed the maturity of an earlier one that was announced on Sept 12.

SunREIT said investment in money market instrument that offers the most competitive discount rate is in line with its active capital management strategy.

SunREIT’s manager, Sunway REIT Management Sdn Bhd is wholly-owned by Sunway.

"The Audit Committee of the manager, after having considered all aspects of the subscription, is of the opinion that the Subscription is in the best interests of SUNREIT and is not detrimental to the interests of the non-interested unitholders of SUNREIT.

"The Audit Committee is of the view that the subscription is fair, reasonable, on normal commercial terms and carried out on an arm’s length basis," it added.

The subscription is not expected to have any material effect on SunREIT's earnings for the financial year ending June 30, 2018.

SunREIT shares slid two sen or 1.15% to close at RM1.72 yesterday, for a market capitalisation of RM5.09 billion, while Sunway closed one sen or 0.56% lower at RM1.79, valuing it at RM8.68 billion. — theedgemarkets.com

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