Keppel REIT to buy stake in MBFC Tower 3

September 18, 2014 4:00 PM SGT
SINGAPORE (Sept 18): Keppel REIT is buying a one-third stake in Marina Bay Financial Centre Tower 3 for $1.25 billion, or $2,790 per sq ft.
It will acquire the stake from Keppel Land, its major shareholder.
The property is valued at about $1.28 billion by Cushman & Wakefield and Savills.
The 46-storey MBFC Tower 3, which was 94% occupied as at Aug 31, has a net lettable area of 1.34 million sq ft.
Keppel REIT will fund the purchase by issuing new units to Keppel Land and placing out 195 million new units at $1.17 each to raise $228 million.
The acquisition will also be partly funded by proceeds from the sale of Prudential Tower as well as loans. Keppel REIT said in May that it would sell the 16-year-old property for $512 million.
Following the acquisition, the REIT’s gearing will rise to 43.8%. It will have more than $8.1 billion worth of assets under management.
MBFC is a joint development of Keppel Land, Cheung Kong (Holdings) and Hongkong Land.
The property comprises three office towers with nearly three million sq ft of office space, two residential towers and about 179,000 sq ft of retail space.
Units in Keppel REIT last traded at $1.23.