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6 Key Insights from Suntec Real Estate Investment Trust’s Chief Executive Officer

Suntec Real Estate Investment Trust (SGX: T82U) was listed in 2004 and is one of the largest REITs in Singapore.

As its name suggests, Suntec REIT has a significant stake in Suntec City. But there’s more to the REIT. It also has a one-third interest in each of One Raffles QuayMarina Bay Financial Centre (Tower 1 and Tower 2), and the Marina Bay Link Mall. In addition, the REIT has interests in two commercial buildings in Australia.

There may be interesting things for investors to learn from Suntec REIT. Last week, Chan Kong Leong, the chief executive officer of Suntec REIT’s manager, was featured on the kopi-C interview series by stock exchange operator Singapore Exchange.

Here are six key insights from the interview I picked out that may be useful for investors:

For the first four insights, click here and here

5. Window to the world and the future

Suntec REIT’s properties in Australia could serve another purpose. Chan explains:

“Australia is more advanced in terms of how space is used, the design of its buildings, and service quality. It’s like having a glass that allows us to view the future, offering learning points on how the Singapore market can develop, for both the office and retail sectors”

“And such changes are not a matter of if, but when.”

The change will happen, in Chan’s opinion. He also believes that we can learn a lot from what other countries are doing. It could be a window to the future on what will happen next in Singapore’s retail sector.

6. The opportunity in disruption

Disruption in the retail space is happening. Chan sums in up in a brief comment:

“Gone are the days when all you have to do is open the store and customers will walk in to buy.”

But it doesn’t have to be seen as a threat alone. Chan believes that there are opportunities for retailers:

“There’s no doubt technology can disrupt the market, but it can also open up opportunities. The challenge for real estate operators is how to use technology to complete the value proposition, and facilitate the business transactions that are taking place.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommended shares of Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong owns units in Suntec Real Estate Investment Trust.