Keppel REIT divests Prudential Tower stake

Prudential Tower will soon have new owners.

Keppel REIT said on Thursday it has entered into agreements to sell its 92.8 per cent stake in the 30-storey office building near Raffles Place MRT station for S$512 million — which is 4.5 per cent above valuation.

The buyers of Prudential Tower are companies held by KOP Ltd, Lian Beng Group, KSH Holdings and Centurion Global.

Keppel REIT said in a statement the divestment of Prudential Tower is in line with efforts to proactively review and evaluate assets to optimise the portfolio.

A substantial amount of the sale proceeds will be used to repay existing debt to provide Keppel REIT with greater financial flexibility, it added.

The sale of Prudential Tower is expected to be completed on September 26.

Source : Channel NewsAsia – 15 May 2014

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