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Keppel REIT’s trustee RBC Investor Services Trust Singapore has secured a $64 million term loan facility from an unnamed lender on Tuesday (9 Oct), according to an SGX filing by the trust manager Keppel REIT Management.
“Under the terms and conditions of the facility agreement, the lender may give notice to RBC Investor Services Trust Singapore, as borrower, to prepay any outstanding loans if the (existing) manager ceases to be the manager of Keppel REIT and a wholly-owned (whether directly or indirectly) subsidiary of Keppel Corporation is not appointed as the manager of Keppel REIT.”
The aforesaid prepayment event may prompt the lender to compel RBC Investor Services Trust Singapore to pay the outstanding loan facility in advance. And if such occurrence triggers a cross default in Keppel REIT’s other borrowings, it could impact loans totalling $3.455 billion (excluding fees and interest).
As of 9 October, the aforementioned conditions have not been violated.
In February, the Business Times reported that Keppel REIT’s fully-owned unit Keppel REIT Fin. Company (KRFC) secured a $350 million term loan facility from an unnamed lender.
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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