Keppel Reit unit secures three bridge loans totalling S$892 million

[SINGAPORE] The manager of Keppel Real Estate Investment Trust (Reit) said on Wednesday (Dec 24) that it has obtained three bridge loan facilities totalling about S$892 million through a wholly owned subsidiary.

The facilities, all of which are dated Wednesday and guaranteed by HSBC Institutional Trust Services (Singapore), contain conditions relating to changes to the Reit’s manager.

These include a facility for a S$300 million bridge loan, under which the borrower must “prepay all outstanding loans within 10 business days” if:

• The manager ceases to manage Keppel Reit or is no longer a wholly owned subsidiary of Keppel Capital; and
• A wholly owned subsidiary of Keppel Capital is not “appointed as a replacement or substitute manager of Keppel Reit”.

Under the second facility, for a S$297.3 million bridge loan, the borrower must make full prepayment in five business days of notice if:

• The manager ceases to manage Keppel Reit; or
• The manager is no longer fully directly and/or indirectly owned by Keppel, and a wholly owned subsidiary of Keppel is not appointed as a replacement or substitute manager.

For the third facility, which covers a S$294.7 million bridge loan, the borrower must prepay the loans in 10 business days of notice if:

• The manager is no longer wholly owned by Keppel; or
• The manager ceases to manage Keppel Reit, and a wholly owned subsidiary of Keppel is not appointed as the Reit’s manager.

Keppel Reit units closed Wednesday 0.5 per cent or S$0.005 higher at S$0.975.