Keppel Reit makes retail foray with $335m Sydney mall stake

Keppel Real Estate Investment Trust (Reit) has entered into an agreement to acquire a 75 per cent interest in a freehold retail mall in Sydney, Australia, for A$393.8 million (S$334.8 million).

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The manager’s chief executive Chua Hsien Yang on Oct 8 said this marks the Reit’s expansion into the retail sector, as Top Ryde City Shopping Centre will be its first pure-play retail asset.

“The diversification allows Keppel Reit to benefit from enhanced portfolio resilience as Australian retail malls offer attractive yields, with suburban retail assets demonstrating resilience and strong growth potential supported by long-term consumption growth and population increase,” Mr Chua said.

He added the acquisition will be accretive to the Reit’s distribution per unit (DPU), and is expected to enhance its overall returns while complementing its Singapore office-focused portfolio.