Keppel REIT has agreed to buy the S$657.2m (€404m) Keppel Bay Tower office building on Singapore’s harbourfront from Keppel Land.
The acquisition will be funded with debt and proceeds from an equity raising through a private placement.
Paul Tham, CEO of the manager, said: “The strategic addition of a quality CBD-fringe office property such as Keppel Bay Tower, with its established tenant base, complements our existing portfolio and increases income resilience.”
He said it would be accretive to the returns of the trust.
“This is also consistent with our strategy of strengthening and diversifying the REIT’s portfolio while staying focused on our core markets.,” he said.
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