Keppel REIT is announcing the acquisition of Keppel Bay Tower from it's sponsor Keppel Corp.
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.
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%.
The manager expects the purchase to be yield accretive (by +2.7% pro forma on the 2019 DPU).