Keppel REIT sells 20% stake in subsidiary holding Ocean Financial Centre to Allianz Real Estate for $537.3 mil
By Timothy Tay
/ EdgeProp |
Ask Buddy
Singapore-listed Keppel REIT Management has divested a 20% minority stake in its subsidiary Ocean Properties LLP, the company which holds the Grade-A office tower Ocean Financial Centre, to global asset manager Allianz Real Estate. The agreed property value of the 20% stake is valued at $537.3 million. The transaction is subject to closing by end-Dec 2018.
The acquisition by Allianz is part of the company’s strategy to allocate five to 10% of its real estate exposure to the Asia-Pacific region. “The Singapore office market is experiencing strong rental growth. From an occupational cost and efficiency perspective, it continues to be favourable vis a vis other comparable markets like Hong Kong,” says Rushabh Desai, CEO Asia-Pacific at Allianz Real Estate.
Keppel REIT says that the divestment will help unitholders to realise part of the capital gains from the property. “We will be realising about $77.1 million of capital gains. This translates to an attractive net asset-level return of 8.3% p.a over the holding period,” says CEO of Keppel REIT Manager, Tan Swee Yiow.
The sale price is 16.8% higher than Keppel REIT’s purchase price of $460.2 million – based on 20% of the $2.3 billion it paid for the 99.9% ownership in Ocean Financial Centre. The 43-storey property has a committed occupancy rate of 95.5%, as of Sept 30 this year. Keppel REIT Management will continue to be the asset manager for Ocean Properties LLP in relation to Ocean Financial Centre.
Ask Buddy
Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
EdgeProp Telegram
EdgeProp FacebookSubscribe to our newsletter
Top Articles
Search Articles