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Keppel Corporation has confirmed reports that efforts are ongoing to carry out an initial public offering and listing of a US commercial real estate investment trust (Reit) on the SGX.
It revealed that the Reit will be jointly sponsored by one of its subsidiaries and KBS Pacific Advisors.
A fund managed by KBS Capital Advisors LLC will inject an initial portfolio of 11 office assets into the Reit.
Keppel noted that a listing application to the Singapore bourse as well as “various applications to the Monetary Authority of Singapore have been submitted in connection with the IPO and these applications are currently under review”.
“The details of the terms of the IPO are still being finalised and the proposed establishment and listing of the Reit will be subject to, among other things, market conditions, the relevant regulatory and other approvals being obtained and the execution of definitive agreements by the relevant parties,” it noted.
The Business Times earlier reported that the freehold offices located in Sacramento, Seattle, Austin, Denver, Orlando, Atlanta and Houston are worth US$820 million.
Expected to raise about US$500 million, the Reit listing could offer an investment yield of almost seven percent, based on a Wall Street Journal report.
In the event the listing goes through, the new Reit will be the second pure US Reit listing in the city-state following Manulife Financial Corp’s successful listing of Manulife US Reit in May last year.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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