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UOB Kay Hian's Koh keeps Keppel REIT at 'buy' and $1.20 target price following acquisition of Sydney mall

The Edge Singapore
The Edge Singapore  • 3 min read
UOB Kay Hian's Koh keeps Keppel REIT at 'buy' and $1.20 target price following acquisition of Sydney mall
Within a 3km catchment area of the Top Ryde City Shopping Centre, average household income is A$128,164, versus A$95,175 for the rest of New South Wales / Photo: Keppel REIT
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Jonathan Koh of UOB Kay Hian has kept his "buy" call and $1.20 target price on Keppel REIT following the acquisition of an effective stake of 75% in a Sydney mall for $334.8 million.

"This marks Keppel REIT’s first retail asset and represents a strategic expansion into the retail sector, diversifying its traditionally office-focused portfolio," states Koh in his Oct 9 note.

The freehold Top Ryde City Shopping Centre, described as a "regional mall", has a lettable area of 77,054 sqm and is anchored by major non-discretionary tenants such as ALDI, Coles, Woolworths, and Kmart, which contribute to 77% of the gross rental income. Other notable tenants include Australia Post, Priceline Pharmacy, KFC, Subway and Westpac.

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