K-REIT Asia’s office property swap approved by unitholders

K-REIT Asia’s swap of Keppel Towers and GE Tower for a one-third stake in Marina Bay Financial Centre (MBFC) has received overwhelming support of 98 per cent.

Its unitholders voted for the swap at an extraordinary general meeting on Wednesday.

The sale of Keppel’s one-third interest in Phase One of MBFC to K-REIT aroused some concerns among investors.

They said the MBFC purchase consideration could have been lower.

But K-REIT assured them that future rentals for MBFC will be revised according to market trends to maximise distribution per unit (DPU).

The swap involves a S$573 million sale of Keppel and GE Towers to Keppel Land, while K-REIT will buy Keppel Land’s one-third stake in MBFC’s Phase One for S$1.4 billion.

Ng Hsueh Ling, chief executive officer of K-REIT Asia Management, said: “The average rental expiry for Marina Bay Financial Centre Phase One is about 10.3 years. The rentals will be regularly reviewed and marked to market. We have projected a DPU of 6.68 cents next year. This is an increase from 6.06…”.

Source : Channel NewsAsia – 8 Dec 2010

Join The Discussion

Compare listings