STOCKS | Staff Reporter, Singapore

Keppel REIT rolls out private placement to fund acquisition of Keppel Bay Tower

Keppel REIT plans to raise $270m, and $262m of which will go to funding the property acquisition.

Real estate investment firm Keppel REIT announced on 18 February that its private placement price would fall between $1.11 and $1.14 per unit, with approximately 235m to 242m units up for sale.

The private placement is expected to be held on 1 March.

Approximately 97.2% of the expected gross proceeds of $270m will go to the proposed acquisition of Keppel Land owned Keppel Bay Tower, whilst 1.5% of the proceeds would go to payment of fees and expenses in connection to the acquistion. The remaining 1.3% would go to general corporate and working capital.

Keppel Bay Tower is a Building and Construction Authority-certified Green Mark Platinum (Zero Energy) commercial building. It is 18 storeys high and located within Singapore's water business hub.

Keppel REIT also said the acquisition would improve total unitholder returns, diversify its portfolio, and complement its expansion in Central Business District.

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