The manager of Singapore-listed office real estate investment trust Keppel REIT (SGX:K71U) announced on 8 January that the REIT has obtained a loan facility through its wholly-owned subsidiary known as Keppel REIT Fin. Company (KRFC).
The term loan facility is for an amount of SGD120 million and was obtained on 8 December 2014. The loan is secured with a corporate guarantee by RBC Investor Services Trust Singapore Limited in its capacity as trustee of Keppel REIT.
Under the terms and conditions of the loan facility, the lender may give notice to KRFC to prepay any outstanding loans if the manager or any wholly-owned subsidiary of Keppel Land Limited ceases to be the manager of Keppel REIT.
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 152.2 million new units issued to Keppel Land through its subsidiary Keppel REIT Investment Pte Ltd.
Units of Keppel REIT are currently listed on the Singapore Exchange at SGD1.23.