Stock News: City Dev re-evaluate the launching of own REIT

City Developments may be in focus after saying it will re-evaluate the merits of launching its own real estate investment trust (REIT) after its attempt to sell some 788 mln sgd worth of commercial properties last year was scuttled. In June last year, City Developments agreed to sell the properties to Suntec REIT but the deal fell through after the Monetary Authority of Singapore failed to clear it before it could be presented for approval by Suntec REIT shareholders at a meeting on September 30. "The group is mindful of the recent tax incentives and the enhancements to the regulatory framework for REIT vehicles in Singapore," City Developments executive chairman Kwek Leng Beng said in the company's latest annual report. "With the improving rental rates for the office market and growing appetite for REIT offerings, the group will re-evaluate the merits and feasibility of various REIT transactions involving our existing asset portfolio through the listing of a new REIT vehicles and other REIT-related transactions," Kwek said. City Developments yesterday closed 0.20 sgd higher at 10.80.