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Keppel REIT’s manager announced recently that the trust has completed the divestment of 100 percent of its interest in an office tower in Sydney, Australia.
The 18-storey office tower on 77 King Street in Sydney was sold to an Invesco Asia Core Fund subsidiary for AU$160 million (S$160 million). The property has 147,000 sq ft of net lettable area.
The sale is said to be approximately 40 percent above the REIT’s original purchase price of AU$116 million (S$116 million) in end-2010 and an approximate 27 percent premium over the property’s latest valuation of AU$126 million (S$126 million).
According to the company’s filing to the SGX, the divestment is not expected to have any material impact on Keppel REIT’s distribution per unit for the current financial year.
Following the sale completion, Keppel said the trust will continue to own eight premium-grade assets, including 11 office towers, in Singapore and Australia. Keppel REIT’s Singapore portfolio includes 100 percent interest in Bugis Junction Towers, one-third interest in Marina Bay Financial Centre Towers 1, 2 and 3, as well as its subterranean mall, Marina Bay Link Mall, one-third interest in One Raffles Quay, and 99.9 percent interest in Ocean Financial Centre.
The REIT will also continue to own interests in Chifley Square in Sydney (50 percent interest), 8 Exhibition Street in Melbourne (50 percent interest in the office building and two retail units, as well as a 100 percent interest in another three retail units), 275 George Street in Brisbane (50 percent interest), as well as the office tower and its annexe on the Old Treasury Building site in Perth (50 percent interest).
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories emailnikki@propertyguru.com.sg
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