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(16-05-2014, 01:15 AM)VIChris Wrote: (15-05-2014, 09:27 PM)MINX Wrote: (15-05-2014, 06:21 PM)cfa Wrote: MEDIA RELEASE
Keppel REIT divests its interest in Prudential Tower for $512 million
The sale price is 4.5% above the latest valuation
http://infopub.sgx.com/FileOpen/Media.Re...eID=297383
I'm disappointed, I would very much prefer they divested an aussie property and maintain a singapore heavy portfolio. Prudential tower is a well located property in the CBD & appears to be performing well. What is management thinking? 
It is known that they sold the tower to fund their acquisitions on another Grade 'A' office building, Marina Bay Financial Centre Tower 3 from Kepland.
An EGM will have to be called for this transaction and sponsor Keppel Land will be abstained from voting . The minorities would have to decide on this deal.
“risk comes from not knowing what you’re doing.”
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1.26 now , up with big volume.
“risk comes from not knowing what you’re doing.”
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Accumulations still on going , No analyst got it right when KR reported its 1Q result month ago. Sometimes i wonder whether these analysts really know jobs ?
“risk comes from not knowing what you’re doing.”
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KR has a track records of share placements for acquisitions , dilution is expected if there is new placement.
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Maybe the accumulation is in anticipation of a special distribution on the way, if there is a fresh placement, the accumulators will dump
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"Media release
15 May 2014, Singapore – Keppel REIT Management Limited, as manager of Keppel REIT (the “Manager”), is pleased to announce that RBC Investor Services Trust Singapore Limited (in its capacity as trustee of Keppel REIT) has entered into agreements with companies held by KOP Limited, Lian Beng Group Ltd, KSH Holdings Limited and Centurion Global Ltd for the sale of its 92.8% interest in Prudential Tower (the “Property”) for $512.0 million, and has received an initial deposit of $25.6 million.The sale price of $512.0 million is 4.5% above the latest valuation of the Property of $490.0 million1. It also represents a 46.7% premium over Keppel REIT’s original purchase price of the Property of $349.1 million. A substantial amount of the sale proceeds will be used to repay existing debt to provide Keppel REIT with greater financial flexibility, with the remaining amount to be used for general corporate and working capital purposes and/or for pursuing acquisition opportunities. Post divestment, Keppel REIT’s aggregate leverage will decline from 42.1% to 38.8%2.Prudential Tower is approximately 16-years old and fully occupied. The divestment of the Property is in line with the Manager’s pro-active review and evaluation of its assets to optimise its portfolio. With a net lettable area (“NLA”) of 221,080 sf, the Property constitutes 7.1% of Keppel REIT’s total portfolio by NLA.Following the divestment, Keppel REIT’s portfolio in Singapore will consist of four premium office buildings – a 99% interest in Ocean Financial Centre, a one-third interest in Marina Bay Financial Centre Phase One (comprising Towers 1 and 2 and Marina Bay Link Mall), a one-third interest in One Raffles Quay, and Bugis Junction Towers, all of which are 100% committed, as reported in Keppel REIT’s 1Q 2014 results announcement.The above transaction is expected to be completed on 26 September 2014. For more information on the transaction, please refer to the Manager’s SGX announcement."
Looking at the media release by Keppel REIT, I highly doubt that they will be releasing any of the proceeds to shareholders.
Rather, to me, there seems to be hints of possible acquisitions in the near future.
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DPU of 1.9 cents for 2Q14 ,decrease from 1.97 cents from previous Qs.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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