Keppel REIT will buy a one-third stake in Marina Bay Financial Centre (MBFC) Tower 3 for S$1.25 billion from Keppel Land, in one of the largest property market deals this year. The price, which works out to around S$2,790 per square foot, is based on independent valuations by property consultancies Cushman & Wakefield and Savills.
Keppel REIT will pay for the property through a mix of cash and new units issued to Keppel Land. In addition, Keppel REIT will raise gross proceeds of S$228.15 million by issuing new units to institutional investors at a discounted price of S$1.17 per unit.
The 46-storey MBFC Tower 3 is part of the Marina Bay Financial Centre integrated development, which comprises three office towers, two residential developments and an underground mall. Tenants at MBFC Tower 3 include DBS Bank, law firm WongPartnership and commodities giant Rio Tinto.
Keppel REIT, which is managed by a unit of Keppel Land, owns a 99.9 per cent interest in Ocean Financial Centre, a one-third interest in Marina Bay Financial Centre Phase One (comprising Towers 1 and 2 and Marina Bay Link Mall), a one-third interest in One Raffles Quay, and Bugis Junction Towers.
The REIT last changed hands at S$1.23 per unit before trading was suspended earlier on Thursday (Sep 18).
Source : Channel NewsAsia – 18 Sep 2014