Business

No decision on Isetan Singapore-YTL Starhill Global Reit deal

Isetan Singapore and YTL Starhill Global Reit (SGReit) have not yet inked a deal on the potential acquisition of Isetan's strata area at shopping mall Wisma Atria, both companies clarified yesterday.

A non-binding expression of interest (EOI) from SGReit's manager has been sent to Isetan Singapore, the companies confirmed yesterday after trading hours.

But no definitive decision has been made, they added.

The Japanese department store operator said that it is currently reviewing the EOI and evaluating whether the proposal is in line with its long-term strategy.

Isetan's shares had shot up by almost 10 per cent yesterday on the back of a news report that the manager of SGReit has made an offer to acquire Isetan Singapore's share of Wisma Atria.

It prompted the Japanese firm to request for a trading halt. Its shares closed at $5.24, up 9.6 per cent - surpassing its 52-week high of $4.80.

The Business Times had earlier reported that SGReit's manager issued a letter of intent to Isetan more than a month ago to open talks on acquiring the Japanese firm's share in the shopping mall along Orchard Road.

SGReit owns about 74 per cent of the Wisma Atria property's total share value of strata lots, with the remaining owned by Isetan Singapore. - THE STRAITS TIMES

Property