Tag Archives: Keppel Land

Keppel Land buys stake in 112 Katong mall for S$51.4m

Keppel Land has acquired a 22.4 per cent stake in 112 Katong mall from BHG, Imagine Properties and Perennial Singapore Investment for S$51.4 million, Keppel Corp announced in a press release on Sunday (Jan 17).

The remaining 77.6 per cent stake is held by Alpha Asia Macro Trends Fund, which is managed by Alpha Investment Partners, a property fund management vehicle of Keppel Land.

Keppel Corp said the transaction is not expected to have any material impact on its net tangible assets or earnings per share for the current financial year.

CEO of Keppel Land Ang Wee Gee said the property management company will focus on strengthening 112 Katong’s positioning as a lifestyle and dining destination in the East.

Keppel Land Retail Management will be appointed as the retail manager for the mall, he added.

Separately, Keppel Corp also announced on Sunday that Keppel REIT has sold its 100 per cent stake in 77 King Street in Sydney, Australia, to a subsidiary of Invesco Asia Core Fund for S$160 million (S$160 million).

The sale price is about 40 per cent above Keppel REIT’s original purchase price of A$116 million in end-2010, and 27 per cent higher than the property’s latest valuation of A$126 million, Keppel Corp said.

Source : Channel NewsAsia – 17 Jan 2016

K-REIT Asia acquires Ocean Financial Centre

K-REIT Asia has acquired Ocean Financial Centre (OFC) from Keppel Land for more than S$2 billion.

The deal sees K-REIT’s aggregate leverage level rise about two percentage points to 41.6 per cent.

OFC is currently 80 per cent occupied with some existing leases at lower-than-existing market rental rates due to the global financial crisis.

To sweeten the deal, Keppel Land has promised rental support of up to S$170 million until end-2016 for K-REIT to fall back on.

K-REIT describes itself as “fortunate” to be offered the price for the acquisition of 87.5 per cent interest in OFC for 99 years along with the support agreed upon.

Keppel Land has a 46.4 per cent stake in K-REIT.

At S$2,600 per square foot, the OFC acquisition is not exactly cheap.

K-REIT Asia chief executive officer Ng Hsueh Ling said: “This is a fresh 99-year lease from the date of completion. This is quite unlike the rest of the other normal sales of sites, where you take about four years to complete the building. (And) what you get – after getting the building stabilised for one year – is probably 94 years or less (lease). Here, you are going to get a fresh 99 years (lease), and the S$2,600 per square foot (or) the S$2.013 billion includes S$170 million of income support.”

Source : Channel NewsAsia – 17 Oct 2011

Alpha Investment Partners, NTUC Income to acquire Capital Square

Alpha Investment Partners Limited (AIP) – which is the property fund management arm of Keppel Land – and NTUC Income have agreed to jointly acquire Capital Square for S$889 million.

Under the deal, Alpha Investment Partners will buy over a 50 per cent stake through its Macro Trends Fund. NTUC Income will hold the other 50 per cent.

Alpha Investment Partners will be the asset manager upon completion of the acquisition.

The two partners said they plan to further enhance Capital Square through various asset enhancement initiatives.

Capital Square is a 16-storey Grade A office tower located within Singapore’s central business district.

It was developed by Keppel Land, but the developer sold off the property in 2002, as part of its divestment plans then.

NTUC Income has been investing in Singapore’s real estate market to generate returns for policyholders.

Just recently, the insurer paid S$101 million for a 49 per cent stake in a prime office property at Collyer Quay.

Source : Channel NewsAsia – 20 Mar 2011

Keppel Land to book larger profit from Marina Bay divestment

Keppel Land expects to book a larger profit of about S$394 million from its Marina Bay divestment, following a positive advance ruling from the tax authorities.

In a filing on the Singapore Exchange, the developer said that the Inland Revenue Authority of Singapore has confirmed it would treat the divestment as capital gain, which is not taxable.

This means that Keppel’s profit from the divestment will be higher by about S$73 million.

The company had last month said it expected to book a net gain of $321 million from the transaction.

Keppel is divesting its one-third stake in Marina Bay Financial Centre Towers 1 & 2 to K-REIT, a property trust it controls.

Source : Channel NewsAsia – 6 Dec 2010

Keppel Land sells one-third interest of MBFC for S$1.4b

Property developer Keppel Land plans to sell one-third stake of its Phase One of Marina Bay Financial Centre (MBFC) to K-REIT Asia for about S$1.4 billion.

This is part of an asset swap agreement with K-REIT, a real estate investment trust.

Under the deal, K-REIT will in turn sell Keppel Towers and GE Tower (KTGE) to Keppel Land for S$573 million.

The one-third stake of Marina Bay Financial Centre Phase One, once sold to K-REIT, will earn Keppel Land a net gain of about S$321 million.

It comprises two office towers with a net lettable area of about 1.65 million square foot. One is 33 storeys, the other is 50 storeys and the Marina Bay Link Mall.

Major tenants at the two towers include Standard Chartered Bank, Barclays, American Express and Nomura.

Keppel Land said this is a good time for the deal and the pricing is in line with valuation.

Lim Kei Hin, CFO of Keppel Land said: “It allows us to unlock some parts of our commercial space. It enables us to acquire prime, freehold asset in a very good area that’ll have a future development potential. It also allows us to participate in K-REIT’s rental growth as well as their capital value appreciation

“We’ll have enough firepower in our arsenal to be able to pursue acquisitions in both residential and commercial properties. We can swap assets for both companies. K-REIT gains a good grade A building and we in return benefit from getting KTGE which has a very good redevelopment potential for us.”

Keppel Land plans to develop Keppel Towers and GE Tower in about two to three years.

They will become prime residential buildings – one will be 46 storeys high and the other 26 storeys – which will include commercial spaces on the first level.

The properties will have a plot ratio of 5.6. It has a total gross floor area of 481,800 square feet and the development will have about 620 residences.

Ng Hsueh Ling, CEO of K-REIT Asia Management said: “KTGE is 19 years old and 17 years old respectively, so increasingly, there may be more property maintenance that will be needed to maintain the building. And we thought that it would be a good opportunity to upgrade our portfolio as a bundled deal.

“In any case, if we had actually kept KTGE, our aggregate leverage would also go beyond 40 per cent. So we took that as an opportunity to upgrade the portfolio and divest a property that’s old and increasingly needing more maintenance.”

After the asset swap, K-REIT’s portfolio asset size will grow from S$2.5 billion to about S$3.4 billion. This asset swap is expected to be completed by the end of this year.

K-REIT said it will not need to raise any equity funds for this deal.

Its funding sources will come from the divestment proceeds (S$570 million), bank borrowings (S$821 million) and rights issue proceeds (S$41.5 million) from late last year.

Keppel Land said this agreement to swap Phase One of Marina Bay Financial Centre is a win-win deal for both companies.

It said this will help Keppel Land build up its land bank. The net cash proceeds of S$812 million will also enable Keppel Land to shore up additional capital for future investments.

For K-REIT, this will not only help increase its cash flow, it will also generate better returns for its unit-holders.

The swap arrangement is subject to approval by the respective shareholders and unit-holders of Keppel Land and K-REIT Asia.

K-REIT expects to get its unit-holders’ approval at the Extraordinary General Meeting at end November.

Source : Channel NewsAsia – 11 Oct 2010