Keppel REIT Makes Foray in Korea With Seoul Office Purchase

News about Keppel REIT

Keppel REIT is purchasing an office property in the South Korean capital:

Keppel REIT Management Limited, as manager of Keppel REIT, wishes to announce that Keppel REIT had entered into an agreement with a value-add strategy fund managed by PGIM Real Estate to acquire an approximate 99.38% stake in T Tower, a freehold Grade A office building located in Seoul's central business district (CBD), at an agreed property value of KRW 252.6 billion3 (approximately S$301.4 million4). The remaining 0.62% stake5 will be acquired by a wholly-owned subsidiary of Keppel Capital Holdings Pte. Ltd. (Keppel Capital). Concurrently, Keppel Investment Management Co., Ltd. (Keppel Investment Management), the asset management arm of Keppel Capital in South Korea, will be appointed the local asset manager for the property.

The purchase is to be funded by debt and will be DPU-accretive according to the manager.

Keppel REIT
Price1.250 SGD
NAV1.360 SGD
Yield (4 quarters)4.40%
Gearing38.4%