Tag Archives: K-Reit

K-REIT to raise S$620m through one-for-one rights issue

Posted on 1 Oct 2009 | Comments Off on K-REIT to raise S$620m through one-for-one rights issue

K-REIT Asia is planning to raise S$620 million through a one-for-one rights issue.

It is offering about 667 million rights units at 93 cents each, representing a 21.2 per cent discount to K-REIT Asia’s closing price of S$1.18 per unit on September 30.

K-REIT Asia said it intends to use about 80 per cent of the gross proceeds to repay borrowings provided by Kephinance Investment. This includes a bridging loan to be drawn down for the acquisition of six strata floors of Prudential Tower.

The remaining proceeds are to be used to fund potential acquisitions and asset enhancement initiatives, as well as general corporate and working capital purposes.

When the rights issue is completed, K-REIT Asia said its aggregate leverage is expected to decrease from 33 per cent to 9.1 per cent.

Keppel Corporation and Keppel Land, which together own about 75.8 per cent of K-REIT Asia’s units, have undertaken to subscribe for their entitlement of rights units.

The remaining 24.2 per cent of rights units will be underwritten by BNP Paribas, Singapore Branch, which is acting as lead manager, underwriter and financial adviser for the rights issue.

An extraordinary general meeting is expected to be convened to approve the rights issue.

Source : Channel NewsAsia – 30 Sep 2009

Comments Off on K-REIT to raise S$620m through one-for-one rights issue

Posted in Funds

Tagged , , , ,

6 floors of Prudential Tower being sold

Posted on 1 Sep 2009 | Comments Off on 6 floors of Prudential Tower being sold

K-Reit said to be buying space at about $1,550 psf of net lettable area.

IN a deal that could help benchmark office values in the Raffles Place area and smooth the way for more office investment transactions, a property fund is said to be selling six floors at Prudential Tower for about $1,550 per square foot or about slightly over $100 million.

Back in the fold: KepLand group is buying back the property at a lower price than what it sold the space for 13 years ago — FILE PHOTO

The buyer in the deal being stitched together is believed to be listed K-Reit Asia, which already owns 44.4 per cent of the strata area in the 30-storey building at the corner of Church and Cecil streets.

Prudential Tower is on a site with a remaining lease of about 85 years. Jones Lang LaSalle is said to be brokering the latest sale involving net lettable area (NLA) of about 67,000 sq ft.

As at the end of last year, K-Reit’s existing space at Prudential Tower was valued at $224 million, or $2,066 psf based on 108,436 sq ft NLA.

So the price of $1,550 psf that K-Reit is expected to pay for its latest acquisition of six floors is about 25 per cent lower than the end-2008 valuation on its existing space.

Some market watchers described the latest pricing as ‘not unreasonable’. Continue reading →

Comments Off on 6 floors of Prudential Tower being sold

Posted in Office / Retail / Industrial

Tagged , , , ,