Property developer Keppel Land has announced that it has entered into a conditional share purchase agreement with K-REIT Asia to divest a one-third stake in Phase One of Marina Bay Financial Centre (MBFC) for S$1,426.8 million, including rental support. The divestment will give the developer a net gain of approximately S$321 million.
As part of the asset swap, Keppel Land has also signed a conditional sale and purchase agreement with K-REIT Asia for the acquisition of GE Tower and Keppel Towers for S$573 million.
Keppel Land plans to redevelop both towers into a high-rise residential project with commercial spaces on the ground level. With a gross floor area of 481,000 sq ft and a plot ratio of 5.6, the project could yield up to 620 residential units.
“The proposed asset swap will enhance value for both shareholders of Keppel Land and unitholders of K-REIT Asia,” said Mr. Kevin Wong, Group CEO of Keppel Land.
“For Keppel Land, the acquisition presents the opportunity to increase our residential pipeline with the potential redevelopment of Keppel Towers and GE Tower. The rapid transformation of the business district into an area for live-work-play and future development plans for the Tanjong Pagar precinct present good investment opportunities into the future,” added Mr. Wong.
The bundled deal is subject to the approval of Keppel Land’s minority shareholders and K-REIT Asia’s minority unitholders at their respective extraordinary general meetings. Upon approval, the deal is likely to be completed by December 31.