Keppel REIT buys Hongkong Land’s one-third stake in MBFC Tower 3 for $937.5 million

Atiqah Mokhtar

/ EdgeProp Singapore

December 11, 2025 11:35 AM SGT

propertyeditor@edgeprop.sg

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Keppel REIT is buying an additional one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 from Hongkong Land (Picture: Albert Chua/EdgeProp Singapore)

Keppel REIT is buying an additional one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 from Hongkong Land at a total acquisition cost of $937.5 million.

In a Dec 11 announcement, the REIT’s manager states it received pre-emptive offer notices from Sageland Private Limited and Freyland Pte Ltd, both subsidiaries of Hongkong Land International Holdings, on Nov 21 relating to the sales of a one-third stake in MBFC Tower 3, a one-sixth stake in MBFC Tower 1 and 2, and a one-sixth stake in One Raffles Quay.

The manager states it has accepted the offer for the stake in MBFC Tower 3, in which Keppel REIT currently holds a one-third interest. Post-completion, the REIT will hold a two-thirds interest in the tower. DBS Group Holdings holds the remaining third.

The purchase price is based on an agreed property value of $4.359 billion for MBFC Tower 3, or $1.453 billion for a one-third interest. This represents a discount of about 1% to its independent valuation of $1.467 billion. The agreed property value translates to $3,268 psf.

The purchase consideration, adjusted for liabilities held by MBFC Tower 3's holding company, amounts to $908.1 million. The total acquisition cost of $937.5 million is inclusive of an acquisition fee of $14.5 million payable to Keppel REIT's manager, as well as transaction fees and expenses of about $14.9 million. The acquisition is expected to be completed on Dec 31.

“The exercise of our pre-emptive right to acquire the incremental one-third share of MBFC Tower 3 presents a rare opportunity to increase our interest in an iconic asset in the prime Marina Bay area, with potential for future rental upside and capital appreciation over the long term,” says Chua Hsien Yang, CEO of Keppel REIT’s manager.

The REIT has launched an underwritten non-renounceable preferential offering to raise gross proceeds of approximately $886.3 million to partially fund the acquisition. Unitholders who are entitled to participate will be offered 23 new units for every 100 existing units at an issue price of $0.96 per new unit.

MBFC Tower 3 is a 46-storey Grade A office building with a net lettable area of about 1.3 million sq ft. The 99-year leasehold building has a committed occupancy of approximately 99.5% as at Sept 30 and a weighted average lease expiry of 3.5 years. DBS is the anchor tenant.

Hongkong Land's divestment of its stake comes on the heels of its sale of MCL Land, the group's Singapore and Malaysia property arm. In September, Hongkong Land announced the sale of MCL Land to Malaysia's Sunway Group for $739 million, with the deal completed last month.

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