KepREIT – AmFraser

TEMASEK SELLS KREIT STAKE FOR $125M

Placement works out to 3.74% of KReit that Temasek received as dividend.

Temasek Holdings has sold its entire direct stake in office landlord Keppel Reit (KReit) in a share placement that started on Monday evening, sources close to the deal said yesterday.

The deal involved 103,994,321 shares offered at a price range of between $1.195 and $1.21 per share, the sources said. This represents a 1.6‐1.8 per cent discount to the trust’s last closing price of $1.23 on Oct 21. The placement offer amounted to an estimated $125 million.

Temasek continues to hold 21 per cent in Keppel Corp which in turn holds 54.6 per cent in Keppel Land. Keppel itself has less than a 1 per cent stake in KReit following its two rounds of dividend in specie, while Keppel Land remains KReit’s largest shareholder at 44.86 per cent.

Besides Keppel group, the other significant shareholders are Capital Group, Franklin Resources, Goldman Sachs and Aberdeen.

With the Temasek share placement, KReit’s free float will rise to more than 55 per cent from 24.4 per cent in January.

KReit recently posted a 9.9 per cent increase in net property income to $100.9 million for the nine months to Sept 30, 2013. Distributable income rose 6 per cent to $159 million, while distribution per unit rose 1.9 per cent to 5.91 cents.

Management had said that its total portfolio value was more than $6.8 billion. Average por