Tag Archives: K-Reit

K-REIT Asia to raise stake in Ocean Financial Centre

Posted on 26 Jun 2012 | Comments Off on K-REIT Asia to raise stake in Ocean Financial Centre

K-REIT Asia will acquire a 12.39 per cent interest in Ocean Financial Centre for S$228.4 million, raising its stake to 99.9 per cent.

In a filing with the Singapore Exchange, K-REIT Asia said the acquisition wil be funded by bank borrowings and the issue of 60 million new units at S$1.17 per unit. The issue price translates to a 15 per cent premium to K-REIT’s Monday closing price of S$1.02 per unit.

The proposed placement is expected to raise around S$70 million.

K-REIT, sponsored by Keppel Land Ltd., said it expects the acquisition to be immediately yield-accretive and raise its distribution to unit holders.

Ocean Financial Centre is a 43-storey premium Grade A office development located at the Raffles Place and Marina Bay precincts.

Ms Ng Hsueh Ling, CEO of K-REIT Asia Management, said: “Since our first acquisition of Ocean Financial Centre in December last year, we have raised the committed occupancy from 80 per cent to over 90 per cent as at end-March.

The enlarged interest will give us full management control of the property and higher tax transparent income, which will increase the DPU to K-REIT Asia’s unit holders.”

“With this acquisition, approximately 93 per cent of K-REIT Asia’s Singapore assets by value will be located in the prime Singapore central business district, strengthening K-REIT Asia’s position as the key premium office landlord in the Raffles Place and Marina Bay precincts.”

Source : CNA – 2012 Jun 25

Comments Off on K-REIT Asia to raise stake in Ocean Financial Centre

Posted in Funds

Tagged , , ,

Property sales fall as cooling measures bite

Posted on 21 Apr 2011 | Comments Off on Property sales fall as cooling measures bite

Singapore’s recent rounds of property cooling measures have started to take their toll, according to Keppel Land.

Based on the preliminary projections from the Urban Redevelopment Authority (URA) in the first quarter of this year, approximately 3,700 new homes were sold, 12.7 percent lower compared to Q4 last year. Home prices climbed at a slower rate of 2.1 percent in Q1, registering the sixth straight quarter of moderated growth since the third quarter of 2009.

Keppel Land sold 85 homes in the first quarter, primarily from The Lakefront Residences, where approximately 91 percent of 591 units released have been sold as of end-March 2011.

To meet the housing demand near MRT and key transportation links, Keppel Land acquired a prime residential site near Sengkang MRT in March. The development is expected to produce up to 622 homes and is scheduled for launch by the end of the year.

Meanwhile, the office market has continued to build up. Grade A rentals increased by four percent quarter-on-quarter to S$10.30 psf in the first quarter and are estimated to increase 10 to 12 percent for the full year, according to CB Richard Ellis (CBRE).

Pre-commitment level at Ocean Financial Centre (OFC) grew from 80 to 82.3 percent, with new commitments acquired from international companies in the professional services and energy sectors.

OFC has acquired the Temporary Occupation Permit (TOP) for part of its office building in March 2011 and new occupants, including law firms Stamford Law and Drew & Napier, have moved in.

Keppel Land’s property fund management vehicles continue to grab acquisition opportunities in the country. Real estate investment advisory firm Alpha Asia Macro Trends Fund has jointly acquired a Grade A office building Capital Square for approximately S$889 million with NTUC Income.

K-REIT Asia’s strategy to be a top landlord in Singapore’s primary business and financial districts has been strengthened by the acquisition of four additional strata floors in Prudential Tower for S$125.1 million, which effectively raised its interest in the Grade A office tower to 93 percent from 73 percent.

Source : PropertyGuru – 21 Apr 2011

Comments Off on Property sales fall as cooling measures bite

Posted in Cooling Measures, Property Market / Real Estate

Tagged , , , , , , , , , , , ,