“This acquisition reflects our confidence in Singapore’s prime office sector and reinforces our focus to anchor and continue to grow our portfolio of Grade A commercial assets in the market,” he adds.
Keppel REIT has accepted the offer from Hongkong Land to acquire a one-third stake in MBFC Tower 3 despite the transaction being dilutive to distributions per unit (DPU). Keppel REIT is acquiring the stake for a purchase price of $937.5 million, which is pegged to an agreed property value of $1.453 billion, or $3,268 psf. This values the whole property at around $4.36 billion.
“The exercise of our pre-emptive right to acquire the incremental one-third share of MBFC Tower 3 presents a rare opportunity to increase our interest in an iconic asset in the prime Marina Bay area, with potential for future rental upside and capital appreciation over the long term,” says Chua Hsien Yang, CEO of the manager.
