Keppel REIT completed its 141.1 billion-South-Korean-won acquisition of a 99.38% stake in the T Tower office building in Seoul.
The transaction with A3 SG Theta Pte. Ltd. paved the way for the Singapore-listed real estate investment trust's entry into the office market of the South Korean capital. It involved the REIT's purchase of a similar amount of shareholding in IGIS No. 104 Professional Investors' Private Real Estate Investment LLC, which beneficially owns the T Tower.
Keppel REIT directed about S$157.0 million of the nearly S$197.5 million net proceeds from its issuance of S$200.0 million in 1.90% convertible bonds due 2024 to the acquisition. The remaining income from the offering, which amounted to roughly S$40.4 million, was used to refinance the company's existing debt and for general corporate and working capital expenditures.
The remaining 0.62% shareholding in the T Tower fell into the possession of Keppel Corp. Ltd., which jointly bought the property with Keppel REIT in April.
As of May 27, US$1 was equivalent to 1,183.81 South Korean won and S$1.38.