Keppel to sell 51% stake in Singapore office tower vehicle for $477 million
Keppel to sell 51% stake in Singapore office tower vehicle for $477 million Oct 20 (Reuters) - Singapore's Keppel KPLM.SI said on Tuesday it would sell a 51% stake in K-Commercial, the entity that owns the Keppel South Central office building, to Keppel REIT KASA.SI for about S$611 million ($477.42 million).
Here are the details:
The asset manager said the transaction would bring its announced asset monetisation so far this year to S$3.7 billion
The consideration comprises S$149 million for the equity stake and about S$462 million for the repayment of a shareholder loan extended by Keppel to K-Commercial
Keppel will retain a 49% stake in K-Commercial, while its real estate division will continue to provide property management and leasing services to Keppel South Central
Keppel will also have a call option to re-acquire the 51% equity stake for a nominal consideration after 70 years
The divestment is expected to be completed in the second quarter of 2027
($1 = 1.2798 Singapore dollars)
(Reporting by Tejas Harish; Editing by Subhranshu Sahu)