MACQUARIE Meag Prime real estate investment trust (MMP Reit) will undertake a strategic review that may result in it selling all its units and going private.
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If MMP Reit, which owns stakes in Wisma Atria and Ngee Ann City, eventually decides to go private, it would be a first for a Reit in Singapore. In a statement yesterday, the Reit said the review would consider strategies such as allowing unitholders to buy all its units.Macquarie Real Estate has a 26 per cent interest in the Reit. An associated entity has a 50 per cent indirect stake in the Reit’s manager, Macquarie Pacific Star Prime Reit Management.
Market watchers say going private makes sense, as some Reits are trading at levels below their net asset value per unit.
MMP Reit said the move followed a number of unsolicited offers to Macquarie Real Estate for its stake in the Reit.
‘MMP Reit is trading at a substantial discount to its net asset value, and the strategic review will be designed to explore the means by which this gap may potentially be closed.’
The Reit’s net asset value stood at $1.61 per unit as at Dec 31. Its shares, which were halted from trading yesterday, last traded at $1.08.
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