Shares of Singapore’s Suntec Real Estate Investment Trust <SUNT.SI> fell as much as 3.2% in morning trade on Wednesday after it announced plans to buy a one-third stake in Marina Bay properties owned by two Hong Kong firms.

At 0302 GMT, Suntec REIT shares were trading down 1.92% at $1.53 on a volume of 5.3 million shares.

 

It said on Tuesday it was buying a one-third interest in properties owned by Cheung Kong and Hutchison Whampoa in the downtown Marina Bay area for $1.5 billion.

 

“The share price is down because of the acquisition because they most likely will have to raise funds such as through share placement, which might have dilution effect on shareholders,” said a local trader.