Keppel REIT Is Buying Keppel Bay Tower

News about Keppel REIT

Keppel REIT is announcing the acquisition of Keppel Bay Tower from it's sponsor Keppel Corp.

Asset

Keppel Bay Tower is a grade A office building located near Singapore's Harborfront. It was completed in 2002 and on a 99-year leasehold land (expiring in 2096).

The asset has a high occupancy of 99.2% and a WALE of 3.3 years.

Financing

The $667.0 million operation (fees included) will be financed by debt and some equity fund raising from a private placement of about 256 million new units, increasing the stock free float by 14.8%.

Expectations

The manager expects the purchase to be yield accretive (by +2.7% pro forma on the 2019 DPU).

Keppel REIT
Price1.200 SGD
NAV1.290 SGD
Yield (4 quarters)3.61%
Gearing35.2%