Business

Keppel-KBS US Reit plans $910 million worth of acquisitions

Ambitious acquisition plans worth more than US$670 million (S$910 million) are on the cards for the Keppel-KBS US Reit as it readies for its listing here, it said yesterday.

The Reit's joint sponsors, Keppel Capital and KBS Pacific Advisors, said the trust has the option of buying four other properties with a total gross value of US$320 million to US$350 million in the next two years.

Those assets are part of the KBS Strategic Opportunity Reit, which is initially selling 11 freehold properties valued at US$829.4 million to Keppel-KBS US Reit as its initial public offering (IPO) portfolio.

There could also be another US$300 million to US$320 million worth of assets under a second Strategic Opportunity Reit managed by KBS that could be stabilised for acquisition in the next two to three years, said Mr Peter McMillan, chairman of the Keppel-KBS US Reit.

There is no right of first refusal for these assets for the Reit due to US rules preventing any class of investors being unfairly favoured. But it "has certain advantages in buying from the Opportunity Reits", thanks to better access to information and lower transaction costs.

Yesterday, Keppel Capital's IPO prospectus was registered.

It had said last week that its IPO of 88 US cents per share could raise gross proceeds of US$553.1 million. - THE STRAITS TIMES

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