Keppel to divest 51 per cent interest in Singapore office tower owner
The S$611 million transaction includes an equity payment and repayment of a shareholder loan. Completion is expected in 2027’s second quarter.
Keppel said it would receive about S$611 million from selling a controlling stake in K-Commercial to Keppel REIT. The buyer will acquire 51 per cent of the entity, which holds the Keppel South Central office building in Singapore.
The asset manager said S$149 million of the consideration covers the equity interest. A further amount of about S$462 million is allocated to repaying a loan that Keppel provided to K-Commercial as a shareholder.
After the divestment, Keppel’s ownership in K-Commercial will stand at 49 per cent. Property management and leasing work for the office building will remain with Keppel’s real estate division.
Keppel will hold a call option permitting it to repurchase the 51 per cent interest after 70 years, paying a nominal consideration. The expected completion window is the second quarter of 2027. Keppel said the sale would lift its announced asset monetisation to S$3.7 billion.
