Recently, Suntec REIT has dropped dramatically and is one of the poor performers among the commercial REITs pricewise. Suntec REIT is currently trading at a whopping 35% discount to its Net Asset Value (NAV)! Why has it fallen out of favour with investors? Suntec City Mall and Convention Center which makes up approximately 80% of the asset base is more than 10 years old. It’s one of those places I used to hang out at when I was a student. I remember the days tons of people would queue up to go into the fountain and touch the water. Now, hardly anybody talks about Suntec City anymore, it is no longer the hip destination it once was. There are many other new cool spots to replace it, ION Orchard, Vivocity and so on. Suntec City was suffering the decay of time and if left unchecked, could fade away in history.

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