K-REIT Asia to raise stake in Ocean Financial Centre

K-REIT Asia to raise stake in Ocean Financial Centre
By Lynda Hong | Posted: 25 June 2012 2106 hrs

SINGAPORE: K-REIT Asia will acquire a 12.39 per cent interest in Ocean Financial Centre for S$228.4 million, raising its stake to 99.9 per cent.

In a filing with the Singapore Exchange, K-REIT Asia said the acquisition wil be funded by bank borrowings and the issue of 60 million new units at S$1.17 per unit. The issue price translates to a 15 per cent premium to K-REIT's Monday closing price of S$1.02 per unit.

The proposed placement is expected to raise around S$70 million.

K-REIT, sponsored by Keppel Land Ltd., said it expects the acquisition to be immediately yield-accretive and raise its distribution to unit holders.

Ocean Financial Centre is a 43-storey premium Grade A office development located at the Raffles Place and Marina Bay precincts.

Ms Ng Hsueh Ling, CEO of K-REIT Asia Management, said: "Since our first acquisition of Ocean Financial Centre in December last year, we have raised the committed occupancy from 80 per cent to over 90 per cent as at end-March.

The enlarged interest will give us full management control of the property and higher tax transparent income, which will increase the DPU to K-REIT Asia's unit holders."

"With this acquisition, approximately 93 per cent of K-REIT Asia's Singapore assets by value will be located in the prime Singapore central business district, strengthening K-REIT Asia's position as the key premium office landlord in the Raffles Place and Marina Bay precincts."



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