Keppel REIT to buy HK Land's stake in MBFC Tower 3 at $1.45 billion

Keppel REIT is acquiring an additional one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 for an agreed property value of $1.45 billion, the manager of the REIT announced on Dec Il.

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The seller is Sageland, a subsidiary of Hongkong Land Holdings.

To fund the acquisition, the real estate investment trust (REIT) has launched an underwritten non-renounceable preferential offering to raise gross proceeds of around $886.3 million.

Upon completion of the deal, expected on Dec 31, Keppel REIT’s interest in the property will increase from one-third to two-thirds.

The REIT had acquired its initial one-third interest in the property from its sponsor, Keppel Land. The remaining one-third stake in the tower is held by DBS Bank.

Under the preferential offering, entitled unit holders will be offered 23 new units for every 100 existing units held. The issue price is fixed at 96 cents per new unit.