Singapore-listed office REIT, Keppel REIT (SGX:K71U), announced on 29 January that it has officially completed the divestment of its 100% interest in 77 King Street in Sydney, Australia, for AUD 160 million (SGD160 million).

The sale price is approximately 40% above Keppel REIT’s original purchase price of AUD116 million in end-2010 and approximately 27% above the property’s latest valuation of AUD126 million as valued by Savills in July 2015.

The divestment will result in a gain of approximately AUD28 million for Keppel REIT. The REIT’s manager has said that it intends to use the sale proceeds to repay existing debt, fund general corporate and working capital purposes or future investment opportunities.

Following the successful divestment of 77 King Street, Keppel REIT will continue to own a portfolio of four properties in Australia. These are namely 8 Chifley Square in Sydney (50% interest), 8 Exhibition Street in Melbourne (50% interest in the office building and two retail units, as well as a 100% interest in another three retail units), 275 George Street in Brisbane (50% interest), as well as the office tower and its annexe on the Old Treasury Building site in Perth (50% interest).

Units of Keppel REIT finished about 3.5% higher from its previous close on the Singapore Exchange to end at SGD0.895.