On the 24-Sep-2018, Keppel-KBS REIT announced its maiden acquisition of Seattle assets known as the Westpark Portfolio in Redmond, Washington for US$169.4mil.
The assets are valued at US$178.0mil and US$181.4mil by valuers Cushman and JLL respectively. The agreed acquisition price is therefore 4.8% and 6.6% discount to both the independent valuations.
According to the announcement, the acquisition is expected to be yield accretive based on pro forma figures with the following assumptions:
Portfolio has an occupancy rate of 97.7%
Partially funded with a rights issue of US$0.59 per unit to raise US$102.3mil
Resulting theoretical ex-rights price of US$0.7854
In a surprising twist, Keppel-KBS REIT announcement late Monday on the 23-Oct-2018 for a 295-for-1000 rights issue priced at only US$0.50 per unit, 15% lower than its initial assumption. This larger than expected rights would result in the theoretical ex-rights price of US$0.666 instead.