Keppel Reit to acquire additional one-third stake in MBFC Tower 3
Entitled unitholders will be offered 23 new units for every 100 existing units held, at an issue price of S$0.96 per new unit
[SINGAPORE] Keppel Reit has agreed to acquire an additional one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 for an agreed property value of S$1.45 billion, the manager of the Reit announced on Thursday (Dec 11).
To fund the acquisition, the real estate investment trust (Reit) has launched an underwritten non-renounceable preferential offering to raise gross proceeds of around S$886.3 million.
DBS, OCBC and UOB have been appointed as the joint bookrunners and underwriters for the offering.
Upon completion of the deal, expected on Dec 31, Keppel Reit’s interest in the property will increase from one-third to two-thirds.
Preferential offering
Under the preferential offering, entitled unitholders will be offered 23 new units for every 100 existing units held. The issue price is fixed at S$0.96 per new unit.
This issue price represents a discount of around 6.8 per cent to the volume weighted average price of S$1.0301 per unit for all trades on the Singapore Exchange on Wednesday.
The offering is expected to open on Dec 26 and close on Jan 9. The new units are expected to be listed on Jan 19.
About S$875.6 million, or 98.8 per cent of the gross proceeds, will be used to partially finance the acquisition. The remaining S$10.7 million, or 1.2 per cent, will be used to pay estimated fees and expenses incurred in connection with the offering.
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