Keppel REIT has exercised its pre-emptive right to acquire an additional one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 office block in Singapore for S$1.45m (€958m) from Sageland Private, a subsidiary of HongKong Land.
Following this transaction, Keppel REIT’s total interest in the 46-storey MBFC Tower 3 will increase to a two-thirds stake. The remaining one-third interest is held by the anchor tenant, DBS Bank.
To fund the transaction, Keppel REIT has launched an underwritten non-renounceable preferential offering of new units to raise approximately S$886.3m.
Chua Hsien Yang, CEO of Keppel REIT Management, the manager of Keppel REIT, said: “This acquisition reflects our confidence in Singapore’s prime office sector and reinforces our focus to anchor and continue to grow our portfolio of Grade A commercial assets in the market.”
Post-completion, Keppel REIT’s Singapore-centric portfolio value will increase from S$9.8bn to S$11.2bn across 14 properties in three markets outside Singapore.
The Marina Bay Financial Centre project was developed by a consortium consisting of Hong Kong Land, Keppel Land and Cheung Kong Holdings, a Hong Kong property group.
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