By P.R. Venkat
Keppel REIT is increasing its stake in one of Singapore's premium office towers in a deal valued at more than US$700 million, adding to its portfolio of prime commercial assets in Asian business districts.
The Asia-focused real estate investment trust is acquiring an additional one-third interest in Marina Bay Financial Centre Tower 3, making it the biggest shareholder in the building, which has a value of about US$1.12 billion.
Keppel REIT will buy the stake from Sageland, a subsidiary of Hongkong Land, for 937.5 million Singapore dollars, or about US$$725.0 million.
The Wall Street Journal had earlier reported on the deal.
Keppel REIT said Thursday that it will fund the acquisition mostly through a combination of a preferential offering of S$886.3 million of units, and via debt.
Oversea-Chinese Bank, DBS Bank and United Overseas Bank are advising the trust on the preferential offer.
The tower is a 46-story premium Grade-A office building in Singapore's central business district with good access to major metro lines.
Post-acquisition, Keppel REIT said that its portfolio exposure in Singapore will increase to 79% from 75.8%. The value of its total portfolio, which spans various Asia-Pacific markets, will increase to S$11.2 billion from S$9.8 billion.
Chua Hsien Yang, chief executive of Keppel REIT Management, said the deal gives the trust a rare opportunity to raise its stake in a property that has room for rental growth and long-term value gains.
"Looking ahead, the sustained demand for quality office space coupled with the absence of new office supply in the Marina Bay area are expected to support potential rental growth and long-term capital appreciation," the firm said.
The acquisition will be completed on Dec. 31.
Units of Keppel REIT are currently on a trading halt in Singapore.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
December 10, 2025 22:00 ET (03:00 GMT)
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