Keppel Land to sell Ocean Financial Centre stake to K-REIT

SINGAPORE: Property developer Keppel Land is selling its 87.5% stake in glitzy new office building Ocean Financial Centre to its own real estate investment trust, K-REIT Asia.

The sale, at S$1.57bil, will give K-REIT the stake for 99 years, after which Keppel Land has the right to buy it back for S$1.

To raise money for the mega-purchase, K-REIT will mount a 17-for-20 rights issue, in which it will sell new units to existing holders for 85 cents each, a 17.5% discount to the closing price of S$1.03 on Monday.

Keppel Land and its parent company Keppel Corp, which together hold 76.3% of K-REIT, will subscribe to their entitled rights.

By Straits Times Singapore