Keppel REIT will acquire Keppel Land's stake in MBFC Tower 3 for SGD1.25 billionKeppel REIT has acquired Keppel Land's stake in MBFC Tower 3 for SGD1.25 billion.

Singapore-listed office real estate investment trust Keppel REIT (SGX:K71U) announced on 15 December that it will be issuing 152,213,000 new units to Keppel Land as partial consideration for the acquisition of a one third interest in Marina Bay Financial Centre Tower 3.

This after the REIT determined that the issue price of the new units to be issued to be SGD1.2154 per unit.

The issue price is determined based on the volume weighted average price for for all trades on the Singapore Exchange for the period of ten business days commencing on 2 December 2014 and ending on 15 December 2014, which is the day preceding the date of legal completion.

Keppel REIT announced in September 2014 that will buy a one-third stake in Marina Bay Financial Centre (MBFC) Tower 3 for SGD1.25 billion from Keppel Land. The acquisition is to be paid for via a mix of cash and issue of these new units issued to Keppel Land through its subsidiary Keppel REIT Investment Pte Ltd.

The trading of the 152,213,000 new units on the Singapore Exchange is expected to commence on 17 December 2014 at 9.00 a.m.

Units of Keppel REIT last changed hands on the Singapore Exchange at SGD1.21.

Keppel REIT will acquire Keppel Land's stake in MBFC Tower 3 for SGD1.25 billion
Keppel REIT will acquire Keppel Land's stake in MBFC Tower 3 for SGD1.25 billion.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.