Suntec REIT (Suntec) will see almost 70% of its office portfolioex One Raffles Quay up for renewal in the next two years. We estimate theaverage passing rent at Suntec City Office is currently in the S$6.50ballpark, comfortably below our fairly bleak reversionary rent expectationsfor the next two years. On the retail side, we have priced in aconservative 8-10% per annum decline in Suntec City Mall rentals over thenext two years. We also feel capital values are at risk, especially for theREIT's office portfolio. Suntec has about S$825m of debt, or about 40% ofits total borrowings, up for refinancing in the next 12 months. Valuehunters have an opportunity to pick up some really good assets on thecheap, in our view. Back of the envelope, the current share price seems tobe implying a 48% decline in capital values. We think our concerns havebeen more than priced in at this point. Maintain BUY with 90 S cents fairvalue.