Keppel Pacific Oak US REIT (KORE) is acquiring two office buildings – Bridge Crossing in Nashville, Tennessee, and 105 Edgeview in Denver, Colorado.
The estimated aggregate purchase consideration for the proposed acquisitions is USD105.1 million, comprising USD46.0 million for Bridge Crossing and USD59.1 million for 105 Edgeview.
As at 30 June 2021, Bridge Crossing and 105 Edgeview are 100% leased to tenants mainly in the fast-growing and defensive technology sector.
They include the anchor tenant at Bridge Crossing, Comdata, which is part of the NYSE-listed Fleetcor Group.
Meanwhile, the anchor tenant at 105 Edgeview is Gogo Business Aviation, which is the world’s largest provider of broadband connectivity services for the business aviation market.
The proposed acquisitions are expected to be completed in 3Q 2021.
Post-acquisition, the REIT’s pro-forma DPU for the financial year ended 31 December 2020 is expected to increase by 0.8% from 6.23 US cents to 6.28 US cents.
KORE intends to finance the proposed acquisitions with proceeds from a proposed private placement to institutional and other investors, and debt financing.
Post- acquisition, KORE’s pro-forma aggregate leverage as at 30 June 2021 is expected to be 37.4%.
KORE’s full disclosure on the acquisition can be viewed here.