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Keppel REIT sells 20% stake in Ocean Financial to Allianz for S$537.3m
Keppel REIT is selling a 20 per cent stake in its subsidiary, Ocean Properties LLP, which holds Ocean Financial Centre, to Allianz Real Estate for S$537.3 million (US$ 391.7 million).
Keppel REIT currently holds a 99.9 per cent interest in Ocean Financial Centre through Ocean Properties. Upon completion of the deal expected end-December, Keppel REIT will maintain a 79.9 per cent interest in Ocean Financial Centre through its stake in Ocean Properties, Keppel REIT said in a statement on Friday (30 November).
Ocean Financial Centre is a 43-storey Grade A office tower located at the intersection of the Raffles Place and Marina Bay financial precincts, with retail component on its ground floor and basement level. The property has total net lettable area of 877,635 sf and a committed occupancy rate of 95.5 per cent as at 30 September 2018.
Independent valuer Cushman and Wakefield VHS had valued the property at about S$2.62 billion as of 15 November, or S$525.3 million based on 20 per cent of the property.
Keppel REIT said the divestment is part of its ongoing portfolio optimisation efforts and proceeds from the sale will give it financial flexibility to continue its DPU-accretive unit buy-back programme, distribute as capital top-ups, pare down debt or fund growth through reinvestments. The company will also be paid a divestment fee of S$2.7 million in accordance with the terms of the trust deed.
Keppel REIT will continue to manage Ocean Financial Centre after the deal is completed.
